For yet another week, low mortgage rates have remained in a holding pattern that has become the trend this year. FreeRateUpdate.com's daily survey of wholesale and direct lenders show that mortgage rates have had little to no movement over the past week. The only fluctuation occurred with jumbo 30 year fixed mortgage rates which jumped back and forth .125% before settling at 5.000% on Wednesday. Current 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%. These are the lowest conforming mortgage rates available with 0.7 to 1% origination fee to well qualified borrowers who must also be able to produce the required documentation necessary for approval by lenders.

FHA mortgage rates have also remained steady this week. Borrowers with little available cash turn to FHA which has a down payment requirement as low as 3.5%. FHA mortgage loans can also be combined with gifts and other grant programs making home ownership more affordable. Current 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 have gained in popularity even though FHA closing costs (APR) tend to be higher due to various FHA fees and the upfront mortgage insurance premium.

The conforming loan limit is still $417,000 to $729,750, depending on location. Anything above these limits requires a jumbo mortgage loan. Current jumbo 30 year fixed mortgage rates are at 5.000% after rising to 5.125% earlier last week. Jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable mortgage rates are at 3.625%. Borrowers must have excellent credit to obtain these low jumbo mortgage rates with 0.7 to 1% origination point.

MBS prices (mortgage backed securities) usually fluctuate daily along with other markets. Mortgage rates move in the opposite direction of MBS price changes. This past week data showed that new home sales and median home price rose as well as mortgage applications which is obviously a result of consistent low mortgage rates. Durable goods orders dropped, household purchase rose less than expected and there was an increase in jobless claims for the week ending May 21st. Most investor moves have been in reaction to the European debt crisis and the fluctuating price of crude. All of this further indicates a weak economic recovery, but consumers are jumping on low mortgage rates to save some money while they are still around.

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 fee.

Click here for New York Mortgage Rates.

Published: June 1, 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.