After seeing no movement for most of last week, mortgage rates declined today continuing a three week downward trend. Freerateupdate.com's daily survey of wholesale and direct lenders show that conforming mortgage rates all declined by .125%. Conforming 30 year fixed rate mortgages are at 4.625%, 15 year fixed rate mortgages are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. These are the best conforming mortgage rates available with 0.7 to 1% to borrowers with good credit and the ability to meet lender approval. The most popular of these are the fixed rate mortgage loans which offer borrowers the security of monthly mortgage payments that remain the same throughout the life of the loan.

FHA mortgage rates had mixed results this week. FHA 30 year fixed mortgage rates saw a decrease of .125% and are at 4.375%, FHA 15 year fixed mortgage rates remain unchanged and are at 4.000% and FHA 5/1 adjustable rate mortgages are at 3.750% which is an increase of .250%. FHA mortgage loans continue to be popular with borrowers, especially first time home buyers due to FHA low down payment requirements and easier credit qualifying guidelines. On the other hand, borrowers must pay higher FHA closing costs (APR) because FHA charges various fees and an upfront mortgage insurance premium.

Jumbo mortgage rates saw the same downward slide as conforming mortgage rates. Jumbo 30 year fixed mortgage rates are at 5.250% which is a decrease of .125%. Jumbo 15 year fixed mortgage rates are at 5.000% and Jumbo 5/1 adjustable mortgage rates are at 3.625%, both down .250%. These low jumbo mortgage rates are available to well qualified borrowers with 0.7 to 1% origination fee. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250 depending on the location of the property.

Mortgage rates move up and down and in the opposite direction of MBS prices (mortgage backed securities). This past week, economic data released included the increase in unemployment claims, the rise of wholesale inventories and sales and the increase in retail trade sales. While responding lightly to these reports, the most movement for MBS prices came from the continued unrest in the Middle East. In addition, the recent earthquake and tsunami in Japan has investors concerned about the economic recovery on a worldwide scale which has had the strongest affect on MBS prices that ultimately resulted in the reduction of almost all mortgage rates.

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.

Published: March 16, 2011

Use of this article without permission is a violation of federal copyright laws.

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.