Mortgage Rate Update 8/20/2010


The economic environment for mortgage rates was little changed this week. Weaker than expected economic data and continued low inflation supported low rates, and investor demand for bonds remained high. As a result, mortgage rates again ended the week a little lower.

As the economic recovery has lost steam recently, investors are closely watching for signs that growth will slow even more. The economic data released during the week was generally weaker than expected. In a sign that the labor market is not improving, Weekly Jobless Claims rose to 500K, the highest level since November 2009. After a series of positive readings, the Philly Fed manufacturing index surprisingly fell to -7.7. Readings below zero indicate a contraction in the sector. Slower economic growth typically leads to less inflationary pressure, which is positive for mortgage rates.

On Tuesday, a conference was held to discuss the future of Fannie Mae and Freddie Mac, and participants offered a wide range of ideas. While no clear consensus was reached, a few hints emerged about what to expect. Treasury Secretary Geithner suggested that the government should retain a role in providing guarantees for mortgages, but that taxpayers should be exposed to less risk. The Obama administration has announced that it will produce a proposal to address these issues by January 2011. In almost any scenario, changes will be phased in very slowly over a period of many years to avoid disruptions to the housing market.

For expert assistance with your financing needs, call Michele Poulin, Retail Sales Manager at Prospect Mortgage, (203) 440-3745.

Here are this week’s rates:

Friday, August 20th, 2010

All rate quotes are for a 60-day lock with 0 points and a 720 FICO score.

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

30 yr conforming fixed: rate = 4.375% APR = 4.453%

15 yr conforming fixed: rate = 3.750% APR = 3.825%

5/1 yr conforming ARM: rate = 3.375% APR = 3.448%

30 yr FHA Fixed : rate = 4.370 APR = 4.641%

30 yr CHFA w/ 1 pt : rate = 4.000% APR = (see below)


CHFA (Connecticut Housing Finance Authority) rates for the week of August 19 – 25 , 2010

Homebuyer Mortgage Plan:

Interest rate: 4.000 % (APR range 4.100 – 4.500%)

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: 4.000 % (APR range 4.100 – 4.500%)

Fees: Up to $2000 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 Harriman Real Estate LLC and Wells Fargo Home 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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  1. Pingback: Mortgage Rate Update 8/20/2010 | Wallingford Wired

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