What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take.
Rate news summary
From Freddie Mac’s weekly survey: The 30-year fixed averaged 4.46 percent, increasing one basis point from last week. The 15-year fixed rate also increased one basis point from last week landing at 3.89 percent. Rates have been flat for four weeks.
The Mortgage Bankers Association reported a 3 percent decrease in loan application volume from the previous week.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $484,350 loan, last year’s payment was $69 lower than this week’s payment of $2,443.
What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages at a zero point cost: A 15-year FHA (up to $431,250 in the Inland Empire, up to $484,350 in Los Angeles and Orange Counties) is at 3.50 percent, a 30-year FHA at 3.625 percent, a 15-year conventional at 3.625 percent, a 30-year at 4.125 percent, a 30-year FHA high-balance (from $484,351 to $726,525 in L.A. and Orange counties) at 4.0 percent, a 15-year conventional high-balance (also $484,351 to $726,525) at 3.875 percent, a 30-year high conventional high-balance at 4.375 percent, a 15-year jumbo (over $726,525) at 4.125 percent and a 30-year jumbo at 4.625 percent.
What I think: Forget the potentially skewed spike (federal workers being furloughed) in this week’s new unemployment claims. Rather, consider January data from Challenger,…