Conforming Jumbo and FHA Mortgage Rates Rise For Second Consecutive Week
According to Mortgage Bankers Association’s (MBA) latest weekly survey, mortgage rates for conforming jumbo (also called High Balance Loans) and FHA loans increased again last week. This is second week in a row that the rates have gone up. And if that was not enough, by the end of Thursday, mortgage backed securities tanked by 50 basis points, further worsening the rates.
30 Year Fixed Mortgage Rates
Per MBA survey, The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 3.61%, with 0.38 points. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.88% from 3.78%, with points unchanged at 0.38.
FHA Loans Rates
The average interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.39% from 3.35%, with points decreasing to 0.58 from 0.69.
15 Year Fixed Mortgage Rates
The average interest rate for 15-year fixed-rate mortgages remained unchanged at 2.88%, with points decreasing to 0.27 from 0.39.
5/1 Adjustable Rate Mortgage (ARM) Rates
The average interest rate for 5/1 ARMs increased to 2.66% from 2.64%, with points decreasing to 0.34 from 0.37.
Outlook For Mortgage Rates
As reported in my earlier post, rate outlook remains stable to bearish. Mortgage rates are almost .25% worse than the best rates seen at the end of October, 2012. Broadly speaking, I do not see rates improving from here. We may get a day or two when the rates improve slightly and those are the days when you should lock. If you are closing in next 3-4 weeks, I suggest locking at the first opportunity. At Arcus Lending, we track mortgage backed securities on an hourly basis so that we can suggest to our clients when to lock.
If you are shopping for the best mortgage rates in California, Washington and Oregon, be sure to call us at 855-644-5626.