Thinking of a home loan refinance? Better do it quick. The baseline 30 year fixed mortgage averaged 5.05% up from 4.94% last week. And that is still slightly lower than a year ago when it was 5.14%. If you are thinking of a 15 year fixed home loan refinance that is still very attractive at 4.45% compared to 4.91% from last year.
The Federal Reserve Board market consensus called for no increases in the immediate future.
The best deals were still in the FHA mortgage 5/1 ARM’s. They averaged 4.4% up from 4.37% last week but still more than a full point below the last years rate of 5.49%.
All the above rates are predicated on conforming loan amounts with an LTV (loan to value) of 80% or less. Remember that pricing adjustments may increase or lower your rate or cost that you actually receive. Consult a reputable mortgage broker for an estimate. Also California jumbo rates are usually a full point higher.
Now my crystal ball predictions for the end of 2010. Mortgage rates hit an all time low just last month. By the end of 2010 they will be at or above 6% for a baseline 30 year fixed mortgage. A home loan refinance will get harder too. New disclosure rules that are bound to confuse borrowers even more than they are now go into effect January 1, 2010.
Why am I saying California mortgage rates will be at least 6% next year end? Because the Fed is slated to stop buying MBS (mortgage backed securities) by the end of March 2010. That will cause illiquidity in the secondary market and make mortgage loans much harder to get.
So now is the time for that home loan refinance.