Mortgage Rate Update 1/2/09

We’re back from the holiday break with another mortgage rate update; we hope everyone’s holidays were safe and full of good food, family, friends and the spirit of the season.

All rates this week were virtually unchanged from the last update in December. The outlook for which way the rates will be headed over the next 1-3 months is mixed, but most experts feel the rates will decline slightly. The Mortgage Rate Trend Survey asks 250 mortgage experts where they think the rates are headed, and below is the breakdown of their collective wisdom:

Over the next 30 days: Over the next 90 days:
rates will rise significantly: 0.0% rates will rise significantly: 0.0%
rates will rise slightly: 17.2% rates will rise slightly: 20.7%
rates will remain unchanged: 17.2% rates will remain unchanged: 17.2%
rates will decline slightly: 58.6% rates will decline slightly: 48.3%
rates will decline significantly: 6.9% rates will decline significantly: 13.8%

Most feel the purchase of the mortgage backed securities and a new president will drive the rates lower; others feel that consumer confidence spurred by Obama taking office will have the opposite effect. Either way, rates are still at historic lows. If you’re looking for a home now, you should be able to get a very attractive rate. If you decide to wait and see if the rates go lower (maybe the 4.5% range?), you might miss out. The problem is, as the graph above shows, no one really knows. Do what’s right for you. For expert assistance, call our in-house mortgage executive, Rick Cannavaro, at (203) 672-2706.

Here are this week’s rates:

Friday, January 2nd, 2009

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%


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 = ****


CHFA (Connecticut Housing Finance Authority) rates for the week of January1 – 7, 2009

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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