Little change in mortgage rates, Freddie Mac says
The average mortgage rates available to borrowers with good credit and 20% down payments or home equity rose a scant notch in Freddie Mac's latest survey of what lenders are offering.
Freddie Mac, one of the government-controlled firms that guarantee most U.S. home loans, 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 too big to be handled by Freddie Mac and Fannie Mae, another big government-backed mortgage company, 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.
Start rates on adjustable loans also were little changed this week, Freddie Mac said in its survey released Thursday morning.
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.
The one-year adjustable averaged 3.22% and 0.7 points, down from 3.26% a week ago.
-- E. Scott Reckard
Photo: Pending home sale in Alhambra this year. Credit: Nick Ut /Associated Press