Just got new rates this AM from one of the mortgage lenders:
30 Year Fixed FHA Rate 4.25% 4.44% 30 Year Fixed Conv. Rate 4.625% 4.72%
You'll notice FHA rates are lower than conventional rates. That is because FHA has raised its mortgage insurance rate to almost double previous rate: 1.25% So, that works out to about 5.50% when combined with the interest rate. Also, FHA no longer removes the PMI when 20% equity is reached. It remains there for the length of the loan.
Also interesting is that the 20-year rate is the same as the 30-year rate. The 15-year rate, however, is 3.75, almost a full point lower than the 30-year rate.
Home sales increased dramatically in Oct.
So, just as the housing market begins a recovery, they will put a lid on it. I have to confess, I don't understand what they are accomplishing.Should job growth be shown to be strong in November, the Fed may move to end QE3 sooner rather than later which would lead mortgage rates up, similar to what happened between May and June of this year; and again in the days following the release of October's job report.
With a better-than-expected result, rates could bump 0.25 percentage points in minute