Today’s Mortgage Rates For Monday, December 27, 2010

Mortgage rates dropped slightly today after climbing in recent months. The perception of an improving economy helped boost mortgage rates as investors moved money from super-safe Treasury bonds and into the stock market. A bit of good news on unemployment, or at least news not as bad as expected, and a tax-rate compromise between President Obama and Congressional Republicans helped improve investor sentiment.

The Federal Reserve’s quantitative easing plan to push down mortgage rates and rates for other loans by purchasing $600 billion in Treasury bond might also helped improve the economic outlook.

HSH Associates, a financial publisher, seems to sum up the feeling of many mortgage rate pundits, in its market trends analysis. “Warmer economic growth has been largely to blame for the increase in rates during the fall,” it stated. “But this increase has been exacerbated to a degree by the Federal Reserve’s stimulus program, some post-election improvement in moods and a tax compromise which lends some certainty (and a little boost) to the outlook as we roll into 2011.”

But don’t celebrate the return of good times just yet. The latest burst of optimism may be overdone. “While the economy is moving forward at a measured clip,” said HSH Associates, “there are few signals that it is powering ahead so forcefully that interest rates should rise much further than they already have, and they may have even overshot the mark, which is typical.”

News Roundup:

For people on the East Coast the major news today, economic or otherwise, was winter blizzard that smothered the region and kept many people home. Stock traders also stayed home, keeping stock trading volume low.

The latest economic news is China’s effort to control inflation by increasing interest rates. The People’s Bank of China announced that it will raise its lending rate by a quarter of a percent to 5.81 percent and lift the benchmark deposit rate by a quarter of a percent to 2.75 percent. That prompted stock values to slide today. The concern is that the Chinese rate hike as well as possible future rate increases will depress global demand around the world and hurt stock values. But that could, in turn, keep mortgage rates down if investors wait to buy stocks and keep their money in safer Treasury or mortgage bonds.

Our Rates:

Fixed rate mortgages are the most common mortgage among borrowers in the United States.  Most people like fixed rate mortgages because they allow homeowners to lock in a consistent monthly payment throughout the life of the mortgage.  Qualified borrowers can get 30 year fixed rate mortgages at a 4.625% mortgage rate with 4.834% APR. A 15 year fixed rate mortgage is available at a 4.000% interest rate and 4.359% APR.

FHA mortgages, another mortgage product which has become popular mortgage in recent years as the lending environment became more and more conservative.  FHA mortgages are mostly popular among first time home buyers because of their low down payment of usually 3.5% and flexible mortgage requirements.  A 30 year fixed FHA mortgage can be obtained at a 4.375 percent interest rate and 5.775 percent APR.

Adjustable rate mortgages (ARMs) offer very low starting mortgage rates compared to other types of mortgages.  ARMs can be an excellent choice for home buyers who only plan to stay in their home for a short period of time or those rate watchers who feel they have a firm handle on where the markets are going. Currently, a 5/1 conforming ARM is available to qualified borrowers at a 2.500 percent mortgage rate and 3.038 percent APR.

Depending upon the price of the homes and the location, some borrowers may be require to get jumbo mortgages. Borrowers are required to get jumbo mortgages when the loan amount for a home is greater than the conforming loan limits set by Fannie Mae and Freddie Mac. The conforming loan limits are $417,000 to $729,750 depending on the location of the property. Currently, Total Mortgage is offering a 30 year fixed jumbo mortgage at 5.375% and 5.588% APR and a 15 year fixed jumbo mortgage at a 4.125% rate and 4.475% APR.

Mortgage rates are always changing. All rates were quoted at 1:00 P.M., on December 27, 2010.

For a complete list of Total Mortgage’s current mortgage rates and mortgages products call 877-868-2503 today, to speak with a licensed mortgage professional.

*All rates shown are for 30 day rate locks. Longer locks available. The APR for conventional loan amounts is calculated using a loan amount of $417,000, 2 points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for jumbo loan amounts is calculated using a loan amount of $500,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. The APR for FHA loan amounts is calculated using a loan amount of $295,000, two points, a $495 application fee, $500 loan processing fee, $715 underwriting fee and a $16 flood certification fee. Some rates and fees may vary by state. All interest rates listed are for qualified applicants and are subject to mortgage approval. All rates are subject to change without notice.