Tuesday, December 22, 2009

Mortgage interest rates creeping up

On The Pill? You like this face.
Mortgage interest rates have been notching up every week for the past three weeks, moving steadily into the 5-percent-and-higher range, according to a recent rate report.

by Broderick Perkins
© 2009 DeadlineNews.Com

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Deadline Newsroom - Mortgage interest rates moved up another notch for the third week in a row to an average 5.21 percent for fixd-rate mortgages (FRMs) on conforming 30-year loans, according to Calabasas, CA-based Informa Research Services' Interest Rate Review.

A year ago the rate was 5.51 percent.

In the Dec. 22 report, Informa said the highest 30-year FRM, with an average annual percentage rate (APR) of 6.96 percent was unchanged from last week. The lowest average, 4.85 percent, was up from 4.45 percent a week ago, according to Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983.

The average 15-year FRM came in Dec. 20 at 4.63 percent, down from 4.56 percent a week ago and down from 5.24 percent last year at this time.

The average interest rate for the 5/1 adjustable rate mortgage (ARM) was 3.57 percent compared to 3.55 percent a week ago. Last year at this time the rate was 4.45 percent.

The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.

Informa's National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators.

Informa also reported the average rate for 30-year, non-conforming jumbo loans, 6.27 percent rose slightly from 6.16 percent a week ago. The jumbo rate remained well off the average 7.22 percent rate this time last year.

The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.

For home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note, the variable rate came in at an average 5 percent, virtually unchanged for the past four weeks but up from 4.66 percent a year ago.

The average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note came in at 7.44 percent, down from 7.45 percent a week ago and 7.94 percent last year.

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Broderick Perkins, an award-winning consumer journalist, parlayed 30 years of old-school journalism into a digital real estate news service, the San Jose, CA-based DeadlineNews Group, including DeadlineNews.Com, a real estate news and consulting service and Web site, and the Deadline Newsroom, DeadlineNews.Com's news back shop.

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