December 1, 2012

Mortgage Rates: Week Ended November 30

December 1, 2012

Mortgage Rates: Week Ended November 30

Rates should be lower than they are given mortgage bond (MBS) prices were up last week. Rates typically drop when bond prices rise, but lenders aren’t fully passing MBS improvements to consumer rate sheets for two reasons:

(1) to control extremely high loan volumes

(2) to protect from any sudden MBS selloff (and resulting rate spike) that would come from any sign of fiscal compromise in Washington.

Nevertheless, we’re still at record lows. Rates as of Friday’s close below. Also below is a link to my daily commentary along with the MortgageNewsDaily MBS team.

CONFORMING RATES ($200,000 to $417,000) 0 POINT:
30 Year: 3.25% (3.37% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 2.875% (2.995% APR)

SUPER-CONFORMING RATES ($417,001 to $625,500* cap by county) 0 POINT:
30 Year: 3.625% (3.745% APR)
FHA 30 Year: 3.25% (3.37% APR)
5/1 ARM: 3.25% (3.37% APR)

JUMBO RATES ($625,501 to $2,00,000) 1 POINT:
30 Year: 3.625% (3.745% APR)
10/1 ARM: 3.0% (3.12% APR)
5/1 ARM: 2.5% (2.62% APR)

Lower or higher rates apply to specific borrower and property profiles. Lower or higher rates available using tax deductible points or zero-cost transactions. These rates assume full doc pricing on Single Family Home purchase loans for borrower with 740 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 60% of value for reserves). ARM rates adjust the first month after initial fixed period shown, and once per year thereafter until year 30. Adjusted rate calculated by adding 2.25% margin to 1yr LIBOR index at time of adjustment. At first adjustment LIBOR+margin cannot exceed start rate+5%, subsequent yearly adjustments can never be greater than 2% per year, total of all adjustments for 30yr life of loan can never exceed start rate+5%. Jumbos shown as range since they’re less market sensitive and change randomly based on lender pricing competition. Rates based on loan amount ranges shown and rates available at the time of production. Rates aren’t a loan commitment nor a loan guarantee, and are subject to change without notice.

*Conventional Super-Conforming cap = $625,500. FHA Super-Conforming cap = $729,750.
Succinct Summation Of Week’s Events (TheBigPicture)

Mortgage Rates Stay Mostly Flat, But Risk Volatility Into December (MortgageNewsDaily)