The average mortgage rates available to borrowers with good credit and 20% down payments or home equity rose a notch.
Freddie Mac said the typical rate for a 30-year fixed loan was 4.87% this week, up from 4.86% last week. The average offering rate for 15-year fixed mortgages was 4.10% compared to 4.09% a week ago.
The lenders were requiring well-qualified borrowers to pay an average of 0.7% of the loan amount in “points” to obtain those rates. Additional third-party charges such as appraisal and title insurance fees are also often added to borrowers’ upfront costs.
Jumbo loans have been running about six-tenths of a percentage point higher than Freddie and Fannie loans in private surveys of the market.
The limit for Freddie and Fannie loans in high-cost areas such as Los Angeles and Orange counties is scheduled to drop on Oct. 1 to $625,500 from the current level of $729,750.
Variable loans with a fixed rate for the first five years were starting at an average 3.72% and 0.6 points, compared to 3.70% a week earlier.
*Source: LA Times