Reports from fellow mortgage professionals indicate the par 30 year fixed rate mortgage remains in the 4.75% to 5.00% range for well qualified consumers.
To secure a par interest rate you must have a FICO credit score of 740 or higher, a loan to value at 80% or less and pay all closing costs including an estimated one point loan origination/discount/broker fee. You may elect to pay less in fees but you will have to accept a higher interest rate.
The FOMC has its last scheduled meeting of 2009 on Wednesday. As always, this can be a big mortgage rate mover. The Fed isn’t expected to raise the Fed Funds Rate from its current “target range” near 0%, but when the FOMC adjourns, its press release will dominate the news.
It will be interesting to see the Fed’s expectation for economic growth for 2010. If the Fed says inflation is under control, mortgage rates should fall, but if the Fed says inflation pressures are growing, mortgage rates should rise.
If you need to lock a rate this week, it may be safer to lock prior to the Fed’s statement. Given the recent strength in Retail Sales, the Fed may choose to revise its growth estimates for the economy, a move that would be awful for mortgage rates.
Posted by Scott Fowler. Scott is a Partner / Mortgage Planner with Horizon Financial. Scott can be reached @ 864-527-8900 x 104 or SFowler@HorizonFinancial.org. Visit Scott’s website @ www.ScottFowlerTeam.com.
