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Mortgage rates heading up February 15, 2008

Mortgage rates continue their trend upward and they don’t look like they’re coming back down soon. This market is still very volatile and as I always, I encourage you to lock and not float your interest rates if you a closing within the next 4-6 weeks. If you’re hunkering for more updates on the market than what I post here every Friday, you can follow me with my updates on Twitter.

The conforming loan limit is still $417,000. HUD has less than a month to publish what the values are for specific areas that the temporary conforming limit will be. The figure that is being whispered for the tri-county area is around $493,000. Count on Fannie and Freddie having an add to rate for loans from $417,001 - $[the tempoary loan limit]. This add could be anywhere from 0.25% to 1.00% to RATE. With FHA loan limits also being increased, FHA insured loans could become “the new jumbo”. Bottom line, we won’t know until this information is published and made available. At this point, there is a lot of speculation. If you have a potential mortgage with a possible loan amount from $417,001-$493,000; it may or may not be worth waiting for the loan limit to lifted.

Conforming Mortgage Rates (for the criteria I used to price these rates, check out last Friday’s rate post):

30 Year Fixed: 5.875% (APR 6.109%)

15 Year Fixed: 5.125% (APR 5.357%)

10/1 ARM Interest Only: 5.375% (APR 6.381%)

7/1 ARM: 5.000% (APR 6.479%)

5/1 ARM: 4.875% (APR 6.746%)

FHA/VA 30 Year Fixed: 6.000% (APR 6.529%)

Jumbo (Non-Conforming) Rates. For pricing criteria, please review the jumbo rate section from last Friday’s rates.

30 Year Fixed: 6.625% (APR 6.774%)

10/1 ARM Interest Only: 5.875% (APR 6.682%)

7/1 ARM: 5.375% (APR 6.659%)

Prime Rate (what HELOCs are based on): 6.00%

This is just a small sample of available rates and products for consumers with a minimum mid-credit score of 680, going full-doc with 20% down for a home purchase. The above rates are priced with 1 point and are based on a 45 day lock. Rates are as of Friday, February 15, 2008 at 12:00 p.m. This is not a guarantee nor is it a commitment of interest rate. For your personal rate quote or for loan amounts over $650,000 please contact a Mortgage Professional.

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