West Valley Properties

Low mortgage rates are holding steady today, but may change this week when several significant economic reports are released.

Current lowest 30 year fixed mortgage rates are at 4.250% and 15 year fixed mortgage rates are at 3.500%. 5/1 ARM loan rates are at 2.750%. Borrowers must have good credit to receive these low conforming mortgage rates with 0.7 to 1% origination fee. In addition, required documentation in order to receive lender approval must be readily available. Many borrowers have improved their credit standing over the past few years and may now be eligible for these lowest conforming mortgage rates.

FHA mortgage rates remain competitive with conforming mortgage rates sitting at the same level or slightly different. Todays FHA 30 year fixed mortgage rates are at 4.250% and FHA 15 year fixed mortgage rates are at 3.750%. FHA 5/1 ARM loan rates are at 3.000%. FHA mortgage loans offer easier credit qualifying, low down payment requirements and the acceptance of gifts. At the same time, FHA closing costs (APR) tend to be higher due to the upfront mortgage insurance premium and other applicable FHA fees.

Current jumbo 30 year fixed mortgage interest rates are at 5.000%, an increase from 4.875% last week. Jumbo 15 year fixed mortgage interest rates are at 4.500% and jumbo 5/1 ARM loan rates are at 3.625%, both remaining the same. With excellent credit and the ability to meet lender guidelines, high end borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% origination point. Jumbo mortgage loans are necessary for mortgages higher than the conforming loan limit which is $417,000 to $729,750 depending on area.

Todays Wells Fargo California 30 year fixed mortgage rates are at 4.500% (4.686% APR).

MBS prices (mortgage backed securities) moved up and down today and eventually settled unchanged (FNMA 30 yr 4.0 at 100.24). Mortgage rates move in the opposite direction of MBS prices. Markets were slow today as there were no reports released to influence investors. The Dow was up only 5 points. Several reports, including retail sales, May housing starts, weekly jobless claim and producer price index, are scheduled for this week. Mortgage rate movement will depend on investor reaction to these and a look at which direction the economy is moving.

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.