Last Rate Post for 2009: 30 Year Fixed in the 5's

Another short holiday week and mortgage rates are proving to be volatile with fewer traders around which can create wild swings in the markets.  This is the last rate post at The Mortgage Porter for the year 2009 and what a year it has been.  I predict that we'll continue to see mortgage rates in the high 4's trending towards the low 5 percent range through the end of March.  This is when the Fed is planning to stop purchasing mortgage backed securities, which has been keeping mortgage rates at their artificial lows that we've been enjoying.  At that point, I expect rates to move to the mid 5 percent range and we'll have to wait and see.   What we do know is where rates are today which is up about 0.25% from just last week's post!  

This week, we have the following economic data being released which can impact bonds, such as mortgage backed securities:

Tuesday, December 29:  Consumer Confidence

Wednesday, December 30:  Chicago PMI and Crude Inventories

Thursday, December 31:  Initial Jobless Claims. 

Friday, January 1, 2010:  HAPPY NEW YEAR! 

This is just a real short list of some of the potential scheduled reports which can move mortgage rates.  Simple day to day activities with the stock market can also impact mortgage interest rates.  

Conforming Mortgage Rates (loan amounts up to $417,000 for 1-unit properties). The conforming rate quote below is based on owner occupied with a mid-low credit score of 740 or higher, "full doc" purchase with a sales price of $500,000 and a loan amount of $400,000 single family dwelling (non condo). This scenario includes reserves (taxes & insurance) not being waived. Rates quoted are priced based on a 30-40 day closing with no prepayment penalties on any of the rates quoted below.

30 Year Fixed w/1 Point*: 5.000% (APR 5.157%).

15 Year Fixed w/1 Pt: 4.375% (APR 4.637%).

10/1 ARM 5/2/5 CAPS w/1 Pt: 4.500% (APR 5.810%).

7/1 ARM 5/2/5 CAPS w/1 Pt: 4.125% (APR 6.078%).

5/1 ARM 5/2/5 CAPS with 1 Point: 3.750% (APR 6.344%).

Conforming High Balance Rates. Pricing is based on the same criteria above except where the loan amount is $417,001 - $567,500 for properties in King, Snohomish or Pierce Counties; specifically priced for a sales price of $625,000 and a $500,000 loan amount. 

30 Year Fixed @ 1 Pt: 5.125% (APR 5.274%).

Jumbo/Non-Conforming. Loan amounts up to 1 million for ARMs and 1.5 million for the 30 year fixed. The quotes below are based on 740 or higher credit scores with 80% loan to value with a loan amount of $650,000.

30 Year Fixed at 1 point: 5.875% (APR 6.026%).

7/1 ARM 5/2/5 CAPS @ 1 Pt: 5.000% (APR 6.483%).

5/1 ARM 5/2/5 CAPS @ 1 Pt: 4.625% (APR 6.654%).

FHA. Pricing based on credit score of 660 or better and loan amounts up to $417,000 for FHA in King, Snohomish and Pierce Counties.  (Mid-credit scores 620-659 has a 0.25% hit to pricing). 

30 Year Fixed @ 1 Pt: 5.125% (APR 5.778%).

FHA-Jumbo/High Balance. Pricing based on loan amounts from $417,001 - $567,500 for King, Snohomish and Pierce Counties with a 660 or higher mid-credit score. 

30 Year Fixed @ 1 Pt: 5.125% (APR 5.761%).

VA. Pricing based on credit scores of 620 or better based on loan amounts up to $417,000. VA loan amounts over $417,000 are also available.

30 Year Fixed w/1 Pt: 5.125% (APR 5.424%).

USDA Rural Housing. 100% financing with income limits and properties must be located within a specific area (this program is generally available in rural towns with populations of 10,000 or less). For eligibility, click here.  Priced with 60 day lock.

30 Year Fixed w/1 Pt: 5.250% (APR 5.568%).

Prime Rate (what HELOCs are based on): 3.25%

This is just a small sample available of rates and products. This is not a guarantee nor is it a commitment of interest rate. New rate sheets are currently issued around every 4 hours.

*For purposes of this post: "1 point" is 1% of the loan amount and would be reflected in line 801 or 808 (depending on whether the loan is brokered or not). Unless the rate is bought down; there are zero discount points referenced which would be reflected on line 802 of the GFE/HUD-1 Settlement Statement. Zero points means no points are paid on lines 801, 802 or 808 (this applies to all rates quoted on this post).

Rates are as of December 28, 2009 at 8:300 a.m. and may change at any time. Available programs may change at anytime as well.  To see rates that I'm quoting "live" click here.