Mortgage Loan Rates For Thursday January 24, 2013

Mortgage loan rates had made some minor improvements on Wednesday, but those improvements didn’t continue on to Thursday as markets closed weaker due at least in part to headlines about unemployment claims--fewer Americans sought unemployment benefits this week, a good-news headline for the economy but bad news for bond markets.

Bond performance can affect mortgage rates and certainly did today--some sources cite lenders have revised their Thursday rates and today’s applicants likely got higher associated costs rather than actual increased rates. Bond performance was weak in the morning, and there was some improvement later but not enough for lower rates or associated costs between many lenders.

Sources report best execution rates remaining at yesterday’s reported 3.5% with the possibility in more rare cases for 3.375%. Many were hoping that figure--reported for 30-year fixed rate conventional mortgages--would be more widespread today, but it wasn’t meant to be.

Thursday’s market activity was described in some quarters as “volatile”; again, while there were some signs of recovery by the end of the trading day, it wasn’t enough to bring too many lenders around to revising their rate sheets for the better.

Today’s mortgage loan rates have some industry professionals speculating that we’re looking at a return to the “upward trend” in mortgage rates. Those shopping around for the best rate on a new purchase mortgage or refinance loan should likely look a bit more aggressively to find that elusive best execution rate in their area if financial qualifications are such that best-execution is a possibility. Anyone undecided on making the commitment is likely taking a bigger risk by waiting than they were at the end of 2012. There’s not so much talk about rates returning to those record lows, these days the industry chatter is more about not getting burned by rates that climb higher.

Here are the mortgage rates for Thursday January 24, 2013. Since these are best-execution rates, your experience may vary depending on your financial qualifications and other factors.

30-year fixed rate conventional mortgages: Mostly 3.5%, some report 3.375% in rare instances
FHA and VA mortgage rates: 3.25% (This varies more between lenders than conventional loan equivalents)
15-year fixed rate mortgages: Between 2.875% and 2.75%
5-year adjustable rate mortgages: Between 2.625% and 3.25%

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