The average interest rate for a 30-year fixed-rate conforming mortgage loan with a balance of $417,000 or less, increased to 4.68% from 4.56% just a week earlier, with points paid at closing, including origination fees, increasing to 0.42 from 0.39, according to the MBA. The above figures are for loans with loan-to-value ratios of 80%.
"Conforming" mortgage loans are those that can be immediately sold to Fannie Mae (FNMA) and Freddie Mac (FNMA). Most banks prefer to stick with confirming loans, as the quick and easy sales to the government-sponsored enterprises usually result in a profit for the lender, with the added -- and incredibly important -- benefit of getting the fixed-rate asset off the books.
-- Written by Philip van Doorn in Jupiter, Fla.>Contact by Email. Follow @PhilipvanDoorn