This past week mortgage rates eased down to better pricing which is positive news for borrowers. Freerateupdate.com's daily survey of wholesale and direct lenders show that current 15 year fixed mortgage rates are at 3.875% after two decreases over the past week while 30 year fixed mortgage rates remain the same at 4.750%. 5/1 ARM loans rates also decreased .125% to the current 3.125%. Available with 0.7 to 1% origination fee, these are the best mortgage rates available to borrowers who have good credit and the ability to meet lender guidelines.
FHA 30 year fixed mortgage rates decreased .125% and are at 4.500% while FHA 15year fixed mortgage rates remain the same at 4.000%. FHA 5/1 adjustable mortgage rates also decreased .125% and are at 3.500%. Offering the benefit of a low down payment, FHA mortgage loans continue to be popular with borrowers even though FHA closing costs (APR) are higher due to various FHA fees and the upfront mortgage insurance premium.
Jumbo mortgage loans also saw improvement this week. Jumbo 30 year fixed mortgage rates are at 5.375% and jumbo adjustable mortgage rates are at 3.875%, both decreasing .125%. Jumbo 15 year fixed mortgage rates remain the same at 5.250%. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the area. For well qualified borrowers, these are the best jumbo mortgage rates available with 0.7 to 1% origination point.
MBS prices (mortgage backed securities) saw the highest jump last Tuesday which resulted in the decline of mortgage rates. Mortgage rates move in the opposite direction of MBS prices. The current unrest in the Middle East has caused investors to move money into safe investments this past week. Although pending home sales was below expectation, other economic data releases included higher consumer confidence, increased existing home sales, lower jobless claims and an increase in personal income, all of which point to a slow but steady economic recovery.