Connecticut Financing Update and Mortgage Rates February 17, 2012
Mortgages Rates improved again this week as domestic economic data failed to inspire markets to move in either direction and optimism over today's conference call between Greece and its creditors deteriorated. In general, economic optimism tends to coincide with interest rates moving higher. Mortgage rates began the week fighting back against this generality as anticipation for today's conference call weighed on bond markets and MBS (the "mortgage-backed-securities" that most directly influence mortgage rates).
This weeks improvements are small on average, but continue bringing the prevailing 3.875% Best-Execution rate for conventional 30yr fixed loans close to 3.75%. Some of the most aggressively priced lenders in the market already have feasible pricing at 3.75% (for 100% ideal scenarios), while the average of all the lenders in our survey remains at 3.875%. Current averages are very close to the lowest we've ever recorded. To quantify that, if rates were to experience 2-3 more days of similarly modest improvements, averages would likely match or surpass historic lows.
According to the latest poll by the National Association of Realtors (NAR), housing affordability conditions improved in most metropolitan areas from softer existing-home prices and record-low mortgage interest rates in the fourth quarter, with rising sales and lower inventory creating more balanced conditions. The median existing single-family home price rose in 29 out of 149 metropolitan statistical areas (MSAs) in the fourth quarter from a year earlier; two were unchanged and 118 areas had price declines.
There is a great article - Want that Creidt Card? .... it also applies to Want that mortgage. There is good solid advice here. http://www.creditcards.com/credit-card-news/10-things-not-to-do-before-applying-for-credit-card-1270.php?a_aid=ec5dff24
Today's Mortgage Rates
30 Year Fixed 3.750 0 points for rate
15 Year Fixed 3.250 0 points for rate
FHA 30 Year Fixed 3.375 0 points for rate
Jumbo30 Year Fixed 4.125 0 points for rate
5/1 Jumbo ARM 3.250 0 points for rate
Jennifer Buchanan
