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Rates back above 6 percent

Email|Link|Comments (3) Posted by Binyamin Appelbaum February 20, 2008 10:42 AM

The window to refinance may be closing. Average interest rates on new 30-year loans climbed to 6.09 percent from 5.71 percent last week, the Mortgage Bankers Association reported this morning. It's a big jump that may seem bigger to some borrowers because rates are now back above 6 percent.

(Bankrate.com reports average rates are at 5.92 percent. Freddie Mac releases its weekly survey tomorrow.)

The reasons for changes in mortgage interest rates are always a bit obscure, but historically, rates never stay below 6 percent for very long. That window may just have closed. Did you manage to seize the opportunity?

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3 comments so far...

I just closed on a terrific refi deal with Countrywide: 15-year fixed at 4.75% with just 0.5 point. I guess my high credit score combined with fortuitous timing worked to my benefit. They wanted 1.5 points, but agreed to the better deal thanks to my perfect credit history.

Posted by Richard February 21, 08 08:46 AM

Any chance someone could explain what is going on with the Jumbo mortgage limits that are due to increase so the limits will qualify in conventional rates? I know it passed congress, was signed by the President, but has yet to be supported/implemented by the banks? This could be huge for many buyers who can afford a larger mortgage because the jumbo rate is estimated to go up above $500K from $417K cap here in Boston?
Thanks!

Posted by Rebecca February 21, 08 09:01 AM

Jumbo limits are expected to be raised with information provided by HUD. They have 30 days to provide the figures and each area will be different as it is based on median sales price.
This all sounds great but it has also been announced that the loans that fit the new limit will have different underwriting guidelines and interest rates than those under the 417 limit. So it will help, just not to the degree expected or hoped for by the public.
The best numbers I have seen for eastern MA has the new limit around 518k.

Posted by mortgage manager February 22, 08 09:01 AM