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Edward James Ferrara III spent 8 years (2001-2008) brokering and banking home loans in Orange County, CA to the tune of some 500 million dollars in mortgages funded by May of 2008, when he founded the rate research website FreeRateUpdate.com, now a unique authority on mortgage rates. Ed recently married and became a first time father (Edward James Ferrara IV). Ed also contributes to RealtyTimes.com (syndicated on Yahoo Real Estate). To contact Ed, email him or call (714) 694-5914.

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30 Year Fixed Mortgage Rates Flat Since Improving Late Last Week

Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, haven’t moved much at all this week. Late last week MBS prices rose leading to a slight improvement (-0.125) in 30 year fixed mortgage rates across the board.

Since the improvement late last week, conforming  30 year fixed mortgage rates have been steady at 4.75, down from 4.875. Conforming = Freddie Mac (FRE) Fannie Mae (FNM) insured a.k.a. “standard”

The current jumbo 30 year fixed rate for a true jumbo loan exceeding even conforming jumbo limits is 5.625. 5.5 is available from several lenders including Wells Fargo for borrowers with extremely low loan to value.

The FHA 30 year fixed rate continues to mirror the conforming (FRE/FNM insured a.k.a. “standard”), 30 year fixed rate. FHA loans come with significantly higher costs thanks to MI and other FHA mandated fees Freddie Mac (FRE) / Fannie Mae (FNM) insured conforming mortgages do not have.

It should be noted that not only does the IRS home buyer tax credit expire in April, but FHA loan guidelines change as well. One of the changes includes MI, an upfront fee charged as a fixed percentage of the loan amount, being boosted to 2.25.

Ed Ferrara – FreeRateUpdate.com

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