Not much movement in the rate markets last week. 30 year fixed par rates still holding steady at 4.75% – usually having to pay a portion of point to get that rate. 15 year fixed have settled in at 4.25% and 5/1 ARMs at 3.25%.
Those looking for a more stable loan below 4% are increasingly looking at 7/1 ARMs and 10 year fixed loans. 7/1 ARM par rates start at 3.625% and 10 year fixed loans start at 3.75%.
Remember that Fannie Mae and Freddie Mac will be implementing more risk based pricing hits in the near future – these will hurt customers with these characteristics:
- Loan to values 75% or over
- Lower credit score borrowers
- Cash out refinance
I would recommend locking these type of loans so you don’t get hit by these pricing changes.