Fixed-mortgage Rate

Fixed-mortgage Rate, Fixed rate mortgages are once again priced near record lows, following increases the week ending February 24th, 2012, reveals ForTheBestRate.com, a consumer focused mortgage rate research website. Mortgage rates as low as 3.875% (APR: 3.875%, Points: 0, Fees: $0, Lender: Seckel Capital, LLC) were advertised on the site for a 30 year fixed California mortgage loan on Friday, March 2nd, 2012. Fifteen year fixed pricing is also near the historical low point with rates posted on ForTheBestRate.com as low as 3.125% (APR: 3.214%, Points: 0, Fees: $1230, Lender: Crestline Funding.)

The drop in mortgage rates was also noted in the weekly rate survey released Thursday, March 1st, 2012 by Freddie Mac, a government sponsored enterprise that purchases mortgage loans on the secondary market. The survey showed 30 year fixed mortgage rates fell to an average of 3.90% (0.8 points) after averaging 3.95% (0.8 points) the week before. 15 year pricing also dropped, moving from an average of 3.19% (0.8 points) to one of 3.17% (0.8 points.) 5 year adjustable rate mortgage prices moved slightly higher, with the average rates across the country rising to 2.83% (0.7 points) after reaching 2.80% (0.7 points) one week earlier.

“We continue to see homeowners taking advantage of these historically low mortgage rates with refinance loans,” said Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender. “Even a relatively small reduction in rate can often mean a lower monthly payment or make it possible to pay off a loan sooner. For those who are able to consolidate higher interest rate debt or move to a shorter term loan the benefits can be even greater.”

30 Year Fixed Mortgage Rates

30 Year Fixed Mortgage Rates, Mortgage rates in the U.S. declined as more Americans sought financing for home purchases.  The average rate for a 30-year (NMCMFUS) fixed loan fell to 3.9 percent in the week ended today from 3.95 percent, Freddie Mac (FMCC) said in a statement.

 The rate dropped to 3.87 percent earlier last month, the lowest in Freddie Mac records dating to 1971. The average 15-year (NMCM15US) rate decreased to 3.17 percent from 3.19 percent, according to the McLean, Virginia-based mortgage- finance company.

Mortgage applications for house purchases jumped 8.2 percent in the period ended Feb. 24, the most in six weeks, according to a Mortgage Bankers Association index. The Washington-based group’s refinancing gauge fell 2.2 percent. While housing demand is improving, sales have been restrained by tight credit and a jobless rate holding above 8 percent.

“Affordability has increased dramatically as a result of the decline in house prices and historically low interest rates on conventional mortgages,” Federal Reserve Chairman Ben S. Bernanke said yesterday in testimony to the House Financial Services Committee in Washington. “Unfortunately, many potential buyers lacked the down payment and credit history required to qualify for loans. Others are reluctant to buy a house now because of concerns about their income, employment prospects and the future path of house prices.”

Sales (ETSLTOTL) of previously owned homes rose 4.3 percent in January from the previous month, the National Association of Realtors reported Feb. 22. Foreclosures and other distressed properties, which made up the largest share of all purchases since April, have been depressing prices.

The S&P/Case-Shiller index of home values in 20 cities fell 4 percent in December from a year earlier, after decreasing 3.9 percent in November, a report from the group showed Feb. 28.

Fixed Mortgage Rates

Fixed Mortgage Rates, Low mortgage rates continued today as Euro zone concerns returned amongst investors who, just yesterday, had started the year with a stock market rally. With European banks looking at new capital requirements this year, renewed jitters over Europe’s financial crisis are keeping markets flat.

Low mortgage rates continue to attract borrowers who wish to refinance existing mortgages. Current 30 year fixed mortgage rates are at 3.500% and 15 year fixed mortgage interest rates are at 2.875%. 5/1 ARM loan rates are at 2.250%. A history of good credit is required to obtain these lowest mortgage rates with 0.7 to 1% origination point. Conforming mortgages are full documentation loans which require stable employment that can be verified and bank statements that show enough assets for reserves. Purchasing a home with a conforming mortgage requires a down payment of 20% or a minimum of 5% that will require paying private mortgage insurance on a monthly basis. It is now possible to refinance a conforming mortgage with Harp 2.0 which does not require an appraisal. In all cases, preparation is the key to obtaining a successful mortgage approval.

Today’s FHA 30 year fixed mortgage rates are at 3.250%, FHA 15 year fixed mortgage interest rates are at 2.750% and FHA 5/1 ARM loan rates are at 2.750%. FHA’s current loan limit was recently raised to $729,750 in order to help consumers in high cost areas across the country. With a number of different mortgage products available, borrowers can also obtain an FHA mortgage with low FHA mortgage rates that includes money for repairs and home improvements. Low down payments of 3.5% with a credit score as low as 580 and 10% with a score to 500 have made it possible for many borrowers to become homeowners. FHA also accepts gifts from approved sources and housing grants or loans to help make the home purchase more affordable for borrowers. Closing costs (APR) for FHA mortgages is higher because of the upfront mortgage insurance premium and other FHA fees, but seller concessions up to 3% can be used to help with these additional expenses.

Current jumbo 30 year fixed mortgage interest rates are at 4.125%, jumbo 15 year fixed mortgage rates are at 3.375% and jumbo 5/1 ARM loan rates are at 2.500%. Excellent credit is required to obtain these low jumbo mortgage rates with 0.7 to 1% origination point. Jumbo mortgage borrowers must have stable employment and records of sufficient assets in order for lenders to consider approval. Since jumbo mortgages are usually held within a lender’s portfolio, lenders generally have stricter guidelines that borrowers must adhere to.

Today’s Wells Fargo California 30 year fixed mortgage interest rates are at 3.875% (4.054% APR).

MBS prices (mortgage backed securities) are down -4/32 which is below earlier pricing of +3/32. MBS prices affect mortgage rates which move in the opposite direction. Today’s report from the Commerce Department for Factory Orders came in slightly higher in November which was expected. The Mortgage Banker Association reported that mortgage activity was down for the two week period around the holidays, which is to be expected. Refinance applications continue to be strong as this is the source for the majority of mortgage applications.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.

30 Year Fixed Mortgage Rates

30 Year Fixed Mortgage Rates, U.S. mortgage rates for 30-year fixed loans increased from the lowest on record as home sales rose amid improved consumer confidence and employment data.

The average rate for a 30-year fixed loan rose to 3.95 percent in the week ended today, from 3.91 percent last week, the lowest in records dating to 1971, Freddie Mac said in a statement. The average 15-year rate climbed to 3.24 percent from 3.21 percent, according to the McLean, Virginia-based mortgage- finance company.

New-home sales jumped to a seven-month high in November, figures from the Commerce Department showed Dec. 23. The unemployment rate declined to 8.6 percent last month, the lowest level in more than two years, and confidence among consumers reached an eight-month high in December.

“Low interest rates are a necessary condition to help the housing market but they aren’t sufficient,” Charles Lieberman, chief investment officer at Advisors Capital Management LLC in Hasbrouck Heights, New Jersey, said in an interview before Freddie Mac made the announcement. “We need some other things to happen to help housing. The most important of those is for job growth to continue at a stronger pace.”

The number of Americans filing claims for unemployment benefits decreased for the week ended Dec. 17 to the lowest level since April 2008, the Labor Department said last week.

Residential home values, weighed down by foreclosures, fell 3.4 percent in October from a year earlier, according to the S&P/Case-Shiller index of property values in 20 cities.

A measure of contracts to buy previously owned homes increased 7.3 percent in November to the highest level since April 2010 after climbing 10.4 percent the prior month, the National Association of Realtors said today in Washington.