Local mortgage planner John Schutze gives his weekly market update:
“Mortgage rates inched up slightly as we end the week! In a highly anticipated speech Friday morning, Fed Chief Bernanke confirmed that economic growth has fallen below the expected levels in recent months. He also suggested that the Fed is unlikely to take further stimulus action unless the economy deteriorates significantly. The current Fed outlook is for below average economic growth with low inflation, which is a favorable environment for low mortgage rates.
FHA UPDATE: Since the financial crisis, the Federal Housing Association (FHA) has grown rapidly and is now backing nearly half of all new home-purchase loans. To boost reserves and reduce risk to taxpayers, the FHA will raise the annual fee it charges to new borrowers. In particular, for case numbers ordered October 4 or later, it will raise annual insurance premiums (MIP) to 0.85% or 0.90%, based on LTV, up from 0.55%.
Current rates:
30 Year Fixed: 4.125 %
15 Year Fixed: 3.75 %
FHA 30 Year: 4.25 %
VA 30 Year: 4.25 %
5 Yr ARM: 3.25 %
Jumbo 30 Year Fixed: 5.25 %
Jumbo 3 Yr ARM: 4.0 %
30 Year Home Equity: 4.5 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John™s team helps Austin area buyers plan their mortgage future. Check out his Austin mortgage blog.
An Austin Realtor is a Central Austin Realtor ®. You can search Austin homes for sale at his website.
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