Rates are stable, costs to borrow increase - how can this be?

Borrowing costs are higher this week.  When volatility picks up in the secondary mortgage market, the cost of doing business gets more expensive for lenders (hedging costs go up). The added costs are passed down to consumers. These costs are unavoidable.

Some lenders have been adjusting their loan pricing much higher because they can't take-in anymore business. They have pushed rates higher to encourage consumers to either wait it out or find another lender offering lower rates.

CURRENT MARKET as reported by Mortgage Rate Watch - The Best Execution 30-year fixed mortgagerate  has fallen to 4.125%.  Several lenders are willing to offer 4.000% and even 3.875% is possible for those interested in buying down the rate with points. 4.250% is widely-available. On FHA/VA 30 year fixed Best Execution is 4.000%, but 3.875 and even 3.750 are available with additional closing costs. 15 year fixed conventional loans are best priced at 3.625% but we're seeing aggressive quotes as low as 3.375%. Five year ARMs are still best priced at 3.25. ARMs seem to have bottomed out. 



Purchasing a home is currently cheaper than renting in 74% of major U.S. cities, according to Trulia's Summer 2011 Rent vs. Buy Index , which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in the nation's 50 biggest cities.


30 year fixed - 4.125% + .0 points for rate
20 year fixed - 3.750% + 0 points for rate
15 year fixed - 3.375 % + 0 points for rate
10 year fixed - 3.250%  + .50 points credit for rate
5/1 ARM - 2.625% - 0 points for rate
7/1 ARM - 3.00%  + 0 points for rate

FHA/VA
30 year fixed - 4.00 % + .500 points for rate
5/1 ARM - 2.750 + 0 points for rate
7/1 ARM - 3.125 + .250 point for rate

Jumbo - over 625,500 - to 2,000,000 Fairfield County
30 year fixed - 4.625 % + 0  points  for rate
15 year fixed - 4.250% + 0 points for rate
5/1 ARM - 3.125 % + 0 points for rate
7/1 ARM - 3.625% + 0 points for rate
10/1 ARM - 4.250% + 0 points cost for rate