Mortgage Rates Lower as Bernanke and Co Leave Rates Alone
Mortgage rates are lower this weekend after the Federal Open Market Committee met and decided to leave the Fed Funds rate in a targeted range of zero percent to 1/4 percent. Slower growth will also keep mortgage rates low for the foreseeable future. Advance first quarter gross domestic product (GDP) was released last week and showed the economy only grew at a 1.8% pace, down from a growth rate of 3.1% in the fourth quarter of 2010.
The current average 30 year mortgage rate is at 4.69%, down from Friday's average 30 year rate of 4.85 percent. 30 year rates have been under 5.00 percent since late 2010.
15 year mortgage rates are averaging 4.00 percent, down from yesterday's average rate of 4.08 percent. 15 year rates will probably break the 4.00 mark sometime this coming week if the markets feel the economy is slowing and bond yields head lower.
Jumbo mortgage rates are also lower today. 30 year jumbo mortgage rates are averaging 5.26 percent, down from an average rate of 5.31 percent yesterday.
15 year jumbo mortgage rates are averaging 4.57 percent, down from yesterday's average 15 year jumbo rate of 4.68 percent.
Rules for super conforming loan amounts are changing this year as the government lowers the loan amounts to protect Fannie Mae and Freddie Mac from loan exposure. The loan limits were raised during the financial crisis to help the housing market.
The max loan amount is being lowered from $729,750 to $625,500 on October 1, 2011. What these means for potential homeowners who need a loan will have to come up with a larger down payment and pay a higher mortgage rate.
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