Time again to check in on the average mortgage rates from Freddie Mac and the MBA. It is important for buyers and sellers to keep their eyes on the direction of mortgage rates. You need to remember that these are the average rates and you may be able to get a better rate OR you might have to pay more.

You can find out what is possible for you by talking to a lender! Be sure to discuss all the options and set your price range based upon a comfortable monthly payment.

The Mortgage Bankers Association reported:

Check out the data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 13, 2012:

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.06% from 4.11%, with points increasing to 0.48 from  0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  This is the lowest 30-year fixed rate in the history of the Survey.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.40% from 4.34%, with points decreasing to 0.37 from 0.47 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA  decreased to 3.91% from 3.96%, with points decreasing to 0.59 from 0.72 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year FHA rate in the history of the Survey.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.33% from 3.40%, with points increasing to 0.39 from 0.37 (including the origination fee) for 80 percent LTV loans.  This is the lowest 15-year fixed rate in the history of the Survey.

Freddie Mac reported:

• 30-year fixed-rate mortgages averaged 3.88% with an average 0.8 point for the week ending January 19, 2012
• This is down from last week when it averaged 3.89%
• Last year at this time, the 30-year fixed-rate mortgage averaged 4.74%
• 15-year fixed-rate mortgage this week averaged 3.17% with an average 0.8 point
• This is up from last week when it averaged 3.16%
• A year ago at this time, the 15-year fixed-rate mortgage averaged 4.05%

The Take Away

The low mortgage rates combined with some of the bargain prices are making homes very affordable. Knowing this should make you curious about finding out what is possible for you. Ask yourself if now is the right time for you to buy a home....

This communication is provided to you for informational purposes only!  Silver Star is not a mortgage lender and so you should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products.