August
2007
Mortgage News
by admin, 
Rates on conforming mortgages fell this week, for the third week in a row. Conforming mortgages are home loans within the maximum loan size that Fannie Mae and Freddie Mac may buy — $417,000 this year.
Loans for more than the conforming limit are called jumbo mortgages. That’s where the asterisk comes in: Even as rates on conforming loans settled lower, rates on jumbo mortgages have risen sharply in the last week or two.
The benchmark 30-year fixed-rate mortgage fell 5 basis points to 6.66 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.25 discount and origination points. One year ago, the mortgage index was 6.57 percent; four weeks ago, it was 6.78 percent.
The benchmark 15-year fixed-rate mortgage fell 5 basis points to 6.33 percent. The benchmark 5/1 adjustable-rate mortgage rose 19 basis points to 6.55 percent.
The jumbo 30-year fixed-rate mortgage skyrocketed, climbing 22 basis points to 7.35 percent.
Weekly national mortgage survey
Results of Bankrate.com’s Aug. 8, 2007, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
30-year fixed 15-year fixed 5-year ARM
This week’s rate: 6.66% 6.33% 6.55%
Change from last week: -0.05 -0.05 +0.19
Monthly payment: $1,060.33 $1,421.95 $1,048.34
Change from last week: -$5.47 -$4.51 +$20.57
Jumbo loans have been affected greatly but I believe that things will level off in 3-4 months. Jumbo rates will continue to rise in the next couple months pushing down conforming loans or loans below 417k. Eventually Jumbo and conforming loans will meet in their risk analysis causing both loans to equalize in the market – or at least if we can hope.
Related Articles:
Sponsored By:
- No sponsors for this posts.
Discussion 
Leave a Comment
Speak Your Mind
Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!
