SOURCE: FreeRateUpdate.com

mortgage rates

February 18, 2010 11:32 ET

Conforming and FHA Mortgage Rates (Par) at 4.75% Still Says FreeRateUpdate.com

LOS ANGELES, CA--(Marketwire - February 18, 2010) -  Wednesday afternoon a sharp drop in mortgage-backed securities prices, which drive mortgage rates in the opposite direction, caused lenders to re-price unfavorably. As a result, conforming and FHA mortgage rates are at risk to rise. Also as a result of the unfavorable re-price, whatever it would have cost a consumer to secure a 30 year fixed rate of 4.75% yesterday, it's going to be a bit more today. According to FreeRateUpdate.com research of wholesale lenders' rate sheets conforming and FHA 30 year fixed rates are still 4.75% at par (.7 to 1.0 origination).

A par rate is what a well qualified consumer should receive on any given day with a standard .07 to 1 point in origination. Par rates are typically at least ¼ percent below national averages reported by Bankrate.com and Freddie Mac. Less savvy borrowers often receive rates 1/4 percent higher than what they are well qualified for because they are not aware of the day's par rates. The banks make huge profits on this. Par rates, not national averages, are the rates consumers should shoot for.

Current Mortgage Rates at Par:

Conforming 30 year fixed rate - 4.75%
Conforming 15 year fixed rate - 4.25%
Conforming 5/1 ARM rate - 3.875%
FHA 30 year fixed rate - 4.75%
VA 30 year fixed rate - 4.875%
FHA 15 year fixed rate - 4.50%
FHA 5/1 ARM rate - 3.875%
Jumbo 30 year Fixed rate - 5.5%
Jumbo Conforming 30 year fixed rate - 5.125%

Source: http://www.freerateupdate.com/

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