Mortgage Interest Rate Market Guide

Treasuries are taking a beating with mortgage backed securities following closely behind today. When these investments don't do well, meaning there is a lot of selling, the interest rates have to go higher in order to try and attract the investment dollars back. Last week wasn't so hot and today doesn't look much different.

The Fed's buying has helped but not as much as expected. The appetite for US mortgage securities isn't there, coupled with lenders holding margins, rates haven't gone to the levels expected. Hang tight... things could turn on a dime.

My recommendation is to lock if you are closing within 15 or 30 days.

The average rate for the top 15 national banks: Owner occupied homes, 30 year fixed mortgage, RATE LOCKED FOR 30 DAYS, platinum borrower*, zero origination, zero discount points is- 5.75%***

Lender only closing cost averages (title, escrows and settlement not included)- appraisal, credit, underwriting, processing, tax service, flood certification, document drawing, etc.- $1560***

***The lower the rate the higher the fees. The higher the rate the lower the fees. Like a teeter totter.

IMPORTANT FANNIE MAE PRICING CHANGES: You might also want to go to Fannie Fees to see the new loan charges that Fannie Mae has begun to implement. These are additional points mortgage borrowers will pay for conventional loans if they fall into one of the new catagories: credit score, loan to value, type of property, etc...

The Fannie chart will help you avoid getting bait and switched with "low balling" rate quotes from unethical lender agents.

*Platinum borrower: 25% property equity, 720 credit min score, sound job and savings, single family detached residences.