Conforming and FHA Fixed Rates increased this week, while Jumbo Rates decreased. That is quite unusual. The rate increase occurred primarily as a result of inflationary fears. The Fed raised the Discount Rate - ie: the rate which eligible banks are charged to borrow short-term funds from a Federal Reserve Bank - from .50% to .75%. They cited continued improvement in financial market conditions warranted the move. The Fed also went on to say the raise is not expected to lead to tighter financial conditions for households or businesses, and does not signal any change in the outlook for the economy or for monetary policy.
Rates are still terrific, and below are some rates for the weekend. These rates are typical for the PURCHASE SFR borrower with excellent credit and a sizable down payment, exclusive of FHA for the down payment.
Take a look at FHA 5/1 ARM rates below, as those rates are at 3.5% for all loans up to $729,750-this is amazing! This can be a very attractive alternative for FHA buyers.
Conventional Loans:
30 Year Fixed Conforming---$417,000 and Below: 5.0% with 1 Point
30 Year Fixed High Balance Conforming---$417,001 to $729,750: 5.25% with 1 Point
30 Year Fixed Jumbo---$729,751 to $1,000,000: 5.5% with 1 Point
5/1 ARM Jumbo---4.875% with 1 Point-amazing for Jumbo product
FHA Loans:
FHA 30 Year Fixed---$417,000 and Below: 5.125% with 1 Point
FHA 5/1 ARM---$417,000 and Below: 3.5% with 1 Point
FHA 30 Year Fixed High Balance---$417,001 to $729,750: 5.25% with 1 Point
FHA 5/1 ARM High Balance---$417,001 to $729,750: 3.5% with 1 Point
Hi Ralph;
I do appreciate you sharing this information with us, you are doing consumers a great service. Good Luck!
Ralph; thanks for the updates.
Ralph....interest rates are still great.....they've never been the problem....unemployment's the killer.