Mortgage Loan News For Tuesday January 22, 2013

Markets were closed on Monday for Martin Luther King, Jr. Day, so there was some anticipation when the opening bell rang on Tuesday--would mortgage rates do a repeat of Thursday’s upward move, or stay closer to Friday’s performance where there was little appreciable change in the wake of Thursday?

Today wound up being what some might call a “50-50” day. Some lenders revised their rate sheets on Tuesday for the worse, but a large number revised slightly better or not at all. Some sources describe Tuesday’s mortgage rates as “stubborn”, and it’s true that the day’s developments did little to budge the conventional 30-year fixed rate mortgage rates which remain at or near 3.5%.

If you’re looking for a correction away from 3.5% and back toward 3.375%, know that many industry professionals are taking a cautious approach, saying the conditions that brought us to 3.5% for 30-year fixed conventional rates are not the same as the last time when they did rebound back to 3.375% There is a short week ahead, and many factors could gang up to keep rates where they are or higher.

There are several question marks that create potential risks for mortgage rates--there are still fiscal cliff-related issues to be settled once and for all, and the Fed’s position on quantitative easing and when it might end is still under debate--or at least in question. Borrowers should consider these factors when trying to decide whether to commit or wait on a home loan or refinance loan.

Here are the best-execution mortgage loan rates for Tuesday January 22, 2013. These rates depend on a variety of factors--your own experience may vary.

30-year fixed-rate conventional mortgage rates: 3.5%
FHA and VA mortgage rates: 3.25% (Your experience may vary more between participating FHA/VA lenders than with conventional equivalents.)
15-year fixed rate mortgage rates: Between 2.875% and 2.75%
5-year adjustable rate mortgages: Between 2.625% and 3.25% depending on the lender

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