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22 May 09 30-Year Mortgage Rates Creep Up

According to CNN Money, mortgage loan rates were mixed this week, with the average 30-year ticking higher, according to a report released Thursday. FHA rates remain low as new homebuyers are reconsidering their renting options as people know the mortgage rates won’t be this low forever.  With the tax deductibility incentives, many Americans renting are finally seeing some advantages to becoming a homeowner and making a mortgage payment.

The average thirty-year fixed mortgage rate jumped to 5.24%, up from 5.21% the previous week, according to Bank Rate’s weekly national survey. Even with the increase, mortgage rates remain at historic lows, the report said. Mortgage interest rates have plunged since late October, when thirty-year fixed home mortgage rates averaged 6.77%.

“The economy remains very weak, and those concerns are balancing out the worries investors have about the amount of government debt issuance,” the report said, because mortgage rates are closely tied to long-term Treasurys.

Six months ago, the average 30-year fixed home loan rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86.  With the average rate now at 5.24%, the monthly payment for the same size loan would be $1,103.17, meaning homeowners who refinance now would save $138 per month.

The average fifteen-year fixed rate mortgage fell to 4.74% from 4.76% the week prior.

The average jumbo mortgage rates for a 30-year fixed rate fell to 6.37%.  FHA mortgage rates rose slightly to 5.125% for the weekly average.

Adjustable rate mortgage loans were also mixed, the report said, with the average 1-year ARM falling to 4.94% while the 5-year ARM increased to 4.96%

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18 May 09 Low Mortgage Rates Continue

Mortgage rates were lowered slightly today for conventional and fixed rate FHA mortgage loans.  Mortgage interest rates continued their trend with 30-year fixed rate home loans being reported under 5%.

Average mortgage rates on 7/1 conforming adjustable rate mortgages is now at 4.84 % down from 4.95 %. The average rate on 7/1 jumbo ARMs is at 6.14 % from 6.17%. Average rates on 5/1 conforming ARMs is now under 4.50% at 4.39%, a big drop from 4.52%. Average interest rates for jumbo 5/1 ARMs is 5.38 % down from 5.43%. Conforming 1-year ARMs averaged 4.82% down from 4.88%. Average jumbo mortgage rates for 1-year ARMs is now at 5.74% up from 5.70%.

Interest only adjustable rate home mortgages were also down this past week. The average rate on 5/1 conforming interest only ARMs is now under 4.50 % at 4.45 %.  Average rates on Jumbo interest only 5/1 ARMs are still a lot higher at 5.70 %. Average rates on 3/1 interest only conforming loans is at 4.81% down from 4.92%. Jumbo 3/1 interest only loans now average 5.64% down from 5.70%.

Watch the Analysis and discussion reported by Bloomberg News with Mahesh Swaminathan of Credit Suisse talking about the mortgage interest rates, home loans, loan modifications and mortgage market in general.

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05 Jan 09 Jumb Mortgage Rates Still Too High

The number of people applying for mortgage loans has been increasing in the recent years.  The high interest rates are particularly an issue in Greater Boston, where expensive housing forces many people into jumbo-loan territory, which is currently $465,750 and above. In 2006, more than 10 percent of borrowers in Massachusetts took out jumbo mortgages.  Homeowners in high cost states like California, Connecticut, Maryland, Massachusetts, New Jersey and New York have been complaining for years about the mortgage injustice that goes along with paying higher interest rates for jumbo mortgages.

Borrowers with conventional home loans which are at or below $417,000 have been seeing mortgage rates as low as 5 percent, while the national average for a jumbo loan hovers around 7 percent.  There is a new, third category of mortgages between jumbo and conventional loans, created last year by Congress, called conforming jumbos, which now average about 5.6 percent, according to a provider of industry data, HSH Associates.  “I think it is crazy you can’t get as good a rate,” said Julia Blake, 36, who with her husband is looking to refinance the Cape they bought in Wellesley for $695,000 in 2007. “To me, a jumbo mortgage should be a luxury house, and in Wellesley it is not. You can’t get anything less than $600,000.” 

Another Wellesley resident, Paul Barnhill, wants to refinance his jumbo ARM into a fixed-rate loan, but not at current mortgage rates.  “I would refinance in a heartbeat if I could get 5 percent,” said Barnhill, 44.  Jumbo mortgage rates are higher because lenders who initiate the loans are having trouble selling them on the secondary market, where the resale of mortgages provides funds for new loans.

Jumbo Mortgage Rates Hinder Home Sales Price with More Equity and Higher Credti Scores Required! 

The banks and investment groups that buy mortgages are reeling from the credit crisis and the subprime mortgage debacle, and are steering clear of any home mortgage that smack of higher risk. The major players on the secondary market, government-sponsored Fannie Mae and Freddie Mac, do not purchase jumbo loans.  Read the complete article >.

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