Tuesday, December 8, 2009

Mortgage interest rates reverse course

Porn study quickly goes flaccid
One mortgage rate monitor reports, after rising for weeks, some mortgage interest rates, but not all, took an about face. Interest rates for home loans and second mortgages, however, remain near historic lows.

by Broderick Perkins
© 2009 DeadlineNews.Com

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Deadline Newsroom - After falling for several weeks, mortgage interest rates turned around this week, rising to 5.06 percent, from 5.01 percent a week ago for fixed-rate mortgages (FRMs) on conforming 30-year loans, according to Calabasas, CA-based Informa Research Services' Interest Rate Review.

However, both the highest 30-year FRM, with an annual percentage rate (APR) of 6.96 percent, and the lowest, at 4.32 percent, remained unchangedfor the past two weeks, according to Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983.

The average 30-year conforming FRM of 5.06 percent was down from a year ago when it was three-quarters of a percentage point higher at 5.58 percent.

The average 15-year FRM came in Dec. 8 at 4.53 percent, up from 4.51 a week ago, but down from 5.36 percent a year ago.

The average interest rate for the 5/1 adjustable rate mortgage (ARM), was 3.54 percent, also up from last week, but down from 4.62 percent a year ago.

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, 6.13 percent rose from 6.05 percent a week ago, for the second week in a row. Still it remained well off the 7.23 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 4.99 percent, virtually unchanged from a week ago and up slightly from 4.97 percent a year ago.

Also relatively unchanged were average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note. They came in at 7.60 percent, down just a tad from 7.61 percent last week and down from 8.09 percent a year ago, according to Informa's survey.

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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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