This past week mortgage rates eased down to better pricing which is positive news for borrowers. Freerateupdate.com's daily survey of wholesale and direct lenders show that current 15 year fixed mortgage rates are at 3.875% after two decreases over the past week while 30 year fixed mortgage rates remain the same at 4.750%. 5/1 ARM loans rates also decreased .125% to the current 3.125%. Available with 0.7 to 1% origination fee, these are the best mortgage rates available to borrowers who have good credit and the ability to meet lender guidelines.

FHA 30 year fixed mortgage rates decreased .125% and are at 4.500% while FHA 15year fixed mortgage rates remain the same at 4.000%. FHA 5/1 adjustable mortgage rates also decreased .125% and are at 3.500%. Offering the benefit of a low down payment, FHA mortgage loans continue to be popular with borrowers even though FHA closing costs (APR) are higher due to various FHA fees and the upfront mortgage insurance premium.

Jumbo mortgage loans also saw improvement this week. Jumbo 30 year fixed mortgage rates are at 5.375% and jumbo adjustable mortgage rates are at 3.875%, both decreasing .125%. Jumbo 15 year fixed mortgage rates remain the same at 5.250%. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the area. For well qualified borrowers, these are the best jumbo mortgage rates available with 0.7 to 1% origination point.

MBS prices (mortgage backed securities) saw the highest jump last Tuesday which resulted in the decline of mortgage rates. Mortgage rates move in the opposite direction of MBS prices. The current unrest in the Middle East has caused investors to move money into safe investments this past week. Although pending home sales was below expectation, other economic data releases included higher consumer confidence, increased existing home sales, lower jobless claims and an increase in personal income, all of which point to a slow but steady economic recovery.

FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders' rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.

California Mortgage Rates

Massachusetts Mortgage Rates

Texas Mortgage Rates

Published: March 2, 2011

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Edward James Ferrara III spent 8 years (2001-2008) brokering and banking home loans in Orange County, CA to the tune of some 500 million dollars in mortgages funded by May of 2008, when he founded the rate research website FreeRateUpdate.com. Ed is not only the founder of FreeRateUpdate.com, he is also a lead contributor to the site, whose roster includes over a dozen writers and of which receives over 50,000 page views per month. Ed's passion for helping consumers to avoid falling victim to banks dishing out higher rates for bigger profits has helped FreeRateUpdate.com to become a unique authority on mortgage rates. Ed recently married Cheyne Aki Gantt and became a first time father to Edward James Ferrara IV, born August 31st 2009. Ed and FreeRateUpdate.com have recently been cited in numerous media outlets including the Los Angeles Times, Yahoo Finance, and Marketwatch.