Low mortgage rates have stayed in place which resulted in an increase in mortgage applications for both purchases and refinances. Freerateupdate.com's daily survey of wholesale and direct lenders showed that mortgage rates have been consistent and still at the lowest levels of 2011 for the past week.

Conforming 30 year fixed mortgage rates are at 4.375%, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. Of these, the most popular are the conforming fixed rate mortgage loans that offer the same monthly mortgage payment for the life of the loan. With good credit and the ability to meet lender guidelines, borrowers can obtain these low mortgage rates with 0.7 to 1% origination fee.

Still standing firm, FHA 30 year fixed mortgage rates are at 4.250%, FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%. FHA mortgage loans offer down payment requirements as low as 3.5%. Easier credit qualifying also draws many borrowers to seek FHA mortgage loans. On the other hand, FHA closing costs (APR) tend to be higher because of various FHA fees and the upfront mortgage insurance premium.

For high end borrowers, jumbo mortgage rates have continued to be favorable. Current jumbo 30 year fixed mortgage rates are at 5.125%, jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable mortgage rates are at 3.625%. Jumbo mortgage loans do not have government backing and tend to be riskier loans, but they are necessary for mortgage financing above the conforming loan limit. Borrowers must have outstanding credit to obtain these low jumbo mortgage rates with 0.7 to 1% origination point.

MBS prices (mortgage backed securities) did not have enough movement to cause a change in mortgage rates over the week. As oil prices decreased, investors fled to safety keeping MBS prices level. The Mortgage Bankers Association reported an increase in mortgage applications as low mortgage rates continue to remain intact. Unemployment figures for the previous week came in lower while, at the same time, Consumer Prices headed higher in April due to the increased cost of food and energy. With the housing market still struggling, home builder confidence continues to be low.

Published: May 19, 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.