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 .