Mortgage Rate Update 12/19/08

Mortgage rates either fell slightly or remained at last week’s levels. The 30 year fixed stayed at 5.125%, but the 30 year FHA and CHFA rates lost an eighth and a quarter point, respectively. Also, the 7 year ARM lost an eighth, the first drop in an adjustable rate mortgage in some time. This is the seventh week in a row that mortgage rates have dropped and mortgage refinance applications have risen. Sustained lowering of rates have been bolstered by the Federal Reserve’s announcement of the purchase of $500 billion in mortgage-backed securities and moving the Fed funds rate to a target of 0.25-0 percent. Despite the continued drop, financial experts are cautioning borrowers sitting on the sidelines for lower rates of the risk of a rapid rate reversal. Rates are at their lowest levels since 1971, so if you’re on the fence hoping for a better rate, this is a good time to get out there and start looking for your new home!

Here are this week’s rates:

Friday, December 19th, 2008

All rate quotes are for a 60-day lock with 0 points

Conforming limits are up to a $417,000 loan limit*

30 yr conforming fixed: rate = 5.125% APR = 5.330%

15 yr conforming fixed: rate = 4.875% APR = 5.140%

7/1 yr conforming ARM: rate = 5.50% APR = 5.825%

5/1 yr conforming ARM: rate = 5.250% APR = 5.510%

30 yr FHA Fixed : rate = 5.250% APR = 5.605%

30 yr CHFA w/ 1 pt : rate = 5.250% APR = 5.375%

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Jumbo loan limits range from $417,001 to $1,000,000*

30 yr jumbo fixed: rate = 6.000% APR = 6.229%

15 yr jumbo fixed: rate = 5.625% APR = 5.936%

7/1 yr jumbo ARM: rate = **** APR = ****

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CHFA (Connecticut Housing Finance Authority) rates for the week of December 18 – 24, 2008:

Homebuyer Mortgage Plan:
Interest rate: 5.250 % (APR range 5.350 – 6.750 %)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term – 30 years, fixed rate

Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)

Interest rate: 5.250 % (APR range 5.350 – 5.750 %)
Fees: Up to $200 Application Fee * Payable to Lender
Term – 30 years, fixed rate

(NOTE: If at any time the interest rate for the Homebuyer Mortgage Program exceeds 6%, the DAP interest rate will be capped at 6%.)

* Additional fees may apply

*Conforming loan limits listed above are for a single-family owner occupied residence.
Courtesy of
The Harriman Team and William Raveis Mortgage

*All rates are subject to change. Minimum down payment and credit score requirements may apply. All information provided is deemed reliable but is not guaranteed and should be independently verified .

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Comments

  1. Thesa Chambers

    I was pleased for a couple buyers this week – when all was said and done on their loan application – their payments will be less than their rent has been…. now that can be great news – first time home buyers, bank owned, and great rates – or investors –

  2. Post
    Author
    The Harriman Team

    These low rates are surely going to be instrumental in getting renters to buy, current owners with ARM’s to refi and investors to find some really great properties. We don’t think the rates are going to go much lower; the 4% – 4.5% we’ve been hearing about doesn’t seem likely to appear any time soon, so we think it’s a good time for these groups to start their search.

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