Are mortgage rates in the 3’s gone?

Mortgage rates have been moving higher causing some home buyers and rate shoppers a bit of surprise. Mortgage rates have been trending up with hints of QE3 and the Fed’s bond buying program, which has kept mortgage rates at artificial lows, may be wrapping up soon.  Freddie Mac reports that the 30 year fixed is at 3.91% when paying 0.7 points and if not points are paid, the rate is 4.09%.  Keep in mind that the rates Freddie has posted today are from last week and rates have continued to nudge higher.

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Checking Out Rates on the Internet, Newspaper or TV? Check the Freshness Date.

When I’m reviewing rates with clients, many are surprised to learn how quickly pricing can change. It’s not unusual to hear a home buyer or someone considering a refinance say, “well how come I see “X” rate on the [insert your media here: internet, newspaper, television commercial, you get the idea]”.

As soon as a rate is posted, even on the internet, it may have changed. This is because mortgage rates are based on mortgage backed securities (bonds) and can change several times a day, similar to the stock market and sometimes just as volatile.  The more fresh a quoted mortgage rate is, the better odds you have of it being reliable.

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Why is my rate quote higher than what is on the internet?

mortgageporter-thinkingEDITORS NOTE: This post was written prior to the regulations in 2010 which require a Good Faith Estimate to be delivered upon application. Please be sure to WHEN a post was written when reading a mortgage blog as regulations and guidelines are subject to change.

This is a question I just received from a gentleman who is considering a low down payment mortgage, such as a VA loan or USDA rural mortgage.

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