My Real Estate Blog

Despite being just 3 1/2 weeks from the much anticipated end of government purchasing of mortgage-backed securities, rates remain steady.  

Conforming 30 year fixed mortgages were available at 4.75 percent all of last week to well-qualified consumers paying a standard .07 to 1 point origination.   

30 year fixed FHA loans were also available at 4.75 percent with a standard .07 to 1 point origination. Despite the interest rate and origination being the same, FHA loans are significantly more expensive due to MI and other fees charged by the Federal Housing Administration at closing. 

Jumbo 30 year fixed rates, for true jumbo mortgages exceeding conforming jumbo loan limits, remain at 5.625.  

Are steady low mortgage rates a calm before the storm? Forecasts for the rise in long term fixed mortgage rates, to take place when government MBS purchases stop at the end of this month, range from slight to drastic. One thing is clear, nobody; including Fed Chief Ben Bernanke knows exactly what's going to happen to mortgage rates, which move opposite MBS prices when the purchasing stops. That's why the Fed has left the door open to re-starting government mortgage-backed securities purchasing if needed.