Mortgage Interest Rates at Lowest Level of the Year

Freddie Mac says the interest rate for a 30-year fixed mortgage has dropped to 4.72%, this year’s lowest and just one basis point above the all-time low of 4.71% set last December.

Palm Coast, FL – June 11, 2010 – Freddie Mac reports that the average interest rate for a 30-year fixed rate mortgage has dropped to 4.72%, the lowest rate of the year. The all-time low is 4.71% set last December.
  • Rates for 5-year ARMs averaged 3.92%
  • Rates for 1-year ARMs averaged 3.91%
As mortgage interest rates flirt with the all-time low, mortgage applications wane. Applications last week were at their lowest level in 13 years, off 35% from a month ago. Some analysts attribute this to the end of the tax credits. Others blame the high jobless rate and lack of new private sector jobs.

Local Mortgage News
According to Barry Wells of Florida First Choice Mortgage, the area of Flager County east of US Rt 1 will no longer be eligible for USDA financing after October 1, 2010 (loan commitment date). Unique features of USDA loans are:
  • $0 down payment – in some cases even the closing costs can be added to the loan.
  • Liberal underwriting guidelines – 31/43 ratios.
  • No monthly mortgage insurance
  • Guaranteed by the Federal Government
  • Virtually every property in Flagler County is eligible (up to October 1, 2010)
  • Liberal income limitations – a family size of 1 – 4 can make an adjusted income of up to $74,050
  • Currently exempt from HVCC (appraisal) requirements
  • Loan pricing even better than FHA or VA

2 replies
  1. John
    John says:


    Why would anyone buying a home today even consider an adjustable arm? The fixed rates are so low that locking in today is the only thing that makes sense.

  2. JimO
    JimO says:

    Freddiwe and Frannie

    I could offer the lowest mortgage rates if I was backed by the US Congress and didn’t have to worry about going in foreclosure.
    Some people have to concern themselves with profits not SOCIAL JUSTICE.

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