Today's 15-yr fixed rate is 4.125%, and the 5/1 ARM rate 3.625.
FHA mortgage rates continue to mirror those of conventional loans. While FHA loans do offer similar rates, the closing cost associated with those rates is significantly higher. That cost is set increase when MI, a premium charged at closing to borrowers obtaining FHA financing, is boosted from 1.75 to 2.25% of the amount borrowed on April, 05.
30-year fixed jumbo loans are available at 5.625% with slightly better rates (5.5) for borrowers with an extremely low LTV. Mortgage-backed securities prices, which drive mortgage rates in the opposite direction, have been flat in the month of March. As a result, mortgage rates have been stable, unchanged since dipping slightly at the end of February.
Just one week now until the much anticipated end of government MBS purchasing. The Fed says ideally the end of buying, set for March 31st, will cause only a slight rise in mortgage rates.
The Austin Business Journal had an article about the population growth for Austin over the 15 years making it the highest growth city in Texas. With that growth, it is likely that the demand for homes will outpace the number homes available. Builders will have to also have to increase their building substantially as the demand new housing units goes up. This will also cause real estate prices to increase across the Austin area due the excess demand. If you are thinking about buying a home right now in this market, it is to your advantage to do it before that high growth kicks in otherwise you will be spending more money for a home. (see the complete article below)
AUSTIN (Austin Business Journal) – The population of the Austin metro area is projected to grow by more than 2.7 million by 2025, according to an analysis by bizjournals.
Austin’s projected growth rate ranks fifth among 250 U.S. metros studied.
Bizjournals forecasts an 87 percent growth rate from the area’s 2005 estimated population of 1.5 million to a 2025 projected population of 2.7 million, giving it the highest growth rate of any Texas city.
The McAllen-Edinburg area is projected to be the second-fastest growing area in Texas with an estimated 56 percent growth in population.
Among other Texas cities:
Dallas-Fort Worth – 50 percent increase to 8.8 million
Houston – 48 percent increase to 7.9 million
San Antonio – 41 percent increase to 2.7 million