Mortgage bond prices continue to show record strength this week . Bonds have pushed up against the all-time highs and these frothy prices in bonds have translated to record low mortgage rates. Mortgage rates in the mid to upper 3’s for a fixed rate may be here for a while as we watch a combination of weak economic data on the employment front, eurodrama with Greece threatening to leave the EU, and stocks taking a hit with JPMorgan Chase’s announcement of a $1B trading loss driving funds into the safe haven of US bonds. We could see mortgage rates in the short term reverse a bit, either way, now is the time to lock, whether refinancing or purchasing.
Mortgage Rates as of Friday May 11, 2012 ( purchase transactions )
30 day rate locks, subject to credit score and loan to value edits
FHA
30 year fixed 3.75% 0% origination fee
3.50% .50 origination fee
Conventional
30 year fixed rate 3.625% ( 30 day lock )
15 year fixed rate 2.875%
5/1 ARM 2.50%
7/1 ARM 2.875%
