Mar 16 2011

Mortgage Rates Down Again

Published by at 6:54 am under General Information

Our mortgage rates declined this week continuing a brief  trend downward. Realty Times reports that conforming 30 year fixed rate mortgages are at 4.625%.  These are the best conforming mortgage rates available and with 1%  origination fee.  Current pressure on Fannie Mae and Freddie Mac mortgage purchasers, means long term fixed-rate loans could soon become a thing of the past.  Jumbo mortgage rates (loans over $417k) saw the same downward slide as conforming mortgage rates. Jumbo 30 year fixed mortgage rates are at 5.250% which is a decrease of 1/8 percent.

Our mortgage rates generally move in the opposite direction of mortgage backed securities prices (MBS). Current economic data included the increase in unemployment claims, the rise of wholesale inventories and sales and the increase in retail trade sales. Most of the movement for MBS prices came from the continued unrest in the Middle East. In addition, the recent earthquake and tsunami in Japan has investors concerned about the economic recovery on a worldwide scale which has had the strongest affect on MBS prices that ultimately resulted in the reduction of mortgage rates.

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