Wednesday, July 13, 2011
Mortgage Rates down to 4.25% for 30 year!
Although mortgage rates have remained steady for several weeks, economic stress here in the U.S. and abroad in Europe is putting enough pressure on investors who are seeking safety and driving MBS prices higher. Freerateupdate.com's daily survey of wholesale and direct lenders show that, except for jumbo 30 year fixed mortgage rates, all other mortgage rates have remained stable for the past week. Current 30 year fixed mortgage rates are at 4.250%, 15 year fixed mortgage rates are at 3.500% and 5/1 adjustable mortgage rates are at 2.750%.
While good credit is necessary to receive these low mortgage rates with 0.7 to 1% origination fee, verification of information and applicable documentation is also necessary to receive lender approval. Lingering low mortgage rates remain a great deal for borrowers who can meet these qualifications.
Jumbo 30 year fixed mortgage rates fluctuated this past week and currently are at 5.000%. Jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable mortgage rates are at 3.625%. Jumbo mortgages are not government insured and tend to be considered risky. For that reason, borrowers must have excellent credit and the necessary documentation to obtain these low jumbo mortgage rates with 0.7 to 1% origination point. The market for jumbo mortgage loans is not currently over stressed since the temporary increase to conforming loan limits. This may change come October if the conforming loan limit is dropped to the original limits, which may cause an overload to the jumbo mortgage market.