Mortgage Rates Down 1 Percent In One Year

Another week, another new low for mortgage rates. 

According to Freddie Mac's weekly Primary Mortgage Market Survey, the 30-year fixed rate mortgage rate fell 3 basis points to 3.53% last week nationwide. The 3.53% mortgage rate is available to mortgage applicants who are willing to pay 0.7 discount points, on average, plus a full set of closing costs.

One year ago, the 30-year fixed rate mortgage rate was 4.52%. Today, it's nearly one percent lower. For every $100,000 borrowed at today's rates as compared to July 2011, a mortgage applicant will save $57 per $100,000 borrowed, or $684 per year.

Over 30 years of a loan, those savings add up.

30-year fixed rate mortgage rates have now dropped through 5 consecutive weeks, and in 11 of the last 12 weeks, a streak dating back to late-April. Depending where you live, however, you may not get access to 3.53% mortgage rates. As Freddie Mac's survey reveals, mortgage rates vary by region.

Last week, mortgage rates by region were listed as follows :

• Northeast Region : 3.56% with 0.7 discount points 
• West Region : 3.49% with 0.7 discount points
• Southeast Region : 3.58% with 0.7 discount points
• North Central Region : 3.52% with 0.7 discount points
• Southwest Region : 3.56% with 0.7 discount points

Homeowners and home buyers in California, Oregon and Washington, therefore, received the lowest rates in the country, on average. Owners and buyers in Florida and Georgia, by contrast, received the highest rates.

This week, though, mortgage rates are lower everywhere.

With Spain at risk for a sovereign default and China warning of slow growth, mortgage rates began the week by falling yet again. If you're eligible to refinance, therefore, the timing may be right to lock a mortgage rate. Similarly, if you're an active home buyer in South Jordan , today's low rates will bolster your maximum purchasing power.

Talk to your loan officer about capitalizing on the lowest rates of all-time. Rates throughout Utah may not rise beginning next week, but when they do rise, they'll likely rise quickly.

Revisiting Housing Market Predictions For 2012

When the calendar flips to a new year, analysts and economists like to make predictions for the year ahead.

So, today, with the year half-complete, it's an opportune time to check back to see how the experts' predictions are faring (so far).

If you'll remember, when 2011 closed, the housing market was showing its first signs of a reboot. Home sales were strong, home supplies were nearing bull market levels, and buyer activity was strong.

Homebuilder confidence was at its highest point in 2 years and single-family housing starts had made its biggest one-month gain since 2009. 

In addition, 30-year fixed rate mortgage rates had just broke below the 4 percent barrier and looked poised to stay there.

There was a lot about which to be optimistic in January 2012.

Yet, there were obstacles for the economy. The Eurozone's sovereign debt issues remained in limbo, oil prices were spiking, and the Unemployment Rate remained high -- three credible threats to growth.

At the time, analyst predictions for the economy occupied both ends of the spectrum, and everywhere in between.

Freddie Mac said home prices would rise in 2012, for example, whereas analysts at CBS News said they'd fall. Both made good arguments.

As another example, American Banker said mortgage rates would rise in 2012. The LA Times, however, said just the opposite. And, the problem with these predictions is that each party can make such a sound defense of their respective positions that it's easy to forget that a prediction is really just an opinion.

Nobody can know what the future holds.

A lot has changed since those predictions were made :

• Job growth slowed sharply after a strong Q1 2012 
• Oil costs dropped rapidly beginning in early-May
• Spain and Italy have joined Greece as potential sovereign debt trouble-zones

Now, none of this was known -- or expected -- at the start of the year yet each has made a material change in the direction of both the housing and mortgage markets.

Today, home prices remain low and 30-year fixed rate mortgage rates now average 3.56% nationwide. Home affordability is higher than it's been at any time in recorded history and, at least for now, low downpayment mortgage products remain readily available.

The experts never saw it coming.

6 months from now, the markets may be different. We can't know for sure. All we can know is that today is great time to be a home buyer in Draper. Home prices and mortgage rates are favorable.

30-Year Fixed Rate Mortgage Rates Fall To 3.62% Nationwide

30-year fixed rate mortgage rates made new, all-time lows once again this week.

According to Freddie Mac's weekly mortgage rate survey of more than 125 banks nationwide, the average 30-year fixed rate mortgage rate fell 4 basis point to 3.62% nationwide.

The rate is available to conforming, prime borrowers willing to pay an accompanying 0.8 discount points plus a full set of closing costs. A "prime" mortgage applicant typically has excellent credit, verifiable income, and at least 25% equity in their home.

And, it's not just the 30-year fixed rate mortgage that made new lows in this holiday-shortened week, either. The 15-year fixed rate mortgage did, too, falling 5 basis points to 2.89%, on average.

The 15-year fixed rate mortgage requires 0.7 discount points plus closing costs.

Discount points are a one-time, up-front closing cost, based on loan size. If your loan requires 1 discount point, that means that your loan has a closing cost equal to 1 percent of your loan size. If your loan requires two discount points, the fee would be equal to two percent of your loan size; and so on.

So, based on this week's Freddie Mac survey, a home buyer in South Jordan opening a $200,000 mortgage and paying 0.8 discount points would face to a one-time $1,600 fee to be paid at closing.

The good news is that discount points are optional. 

To avoid paying discount points, simply ask your lender for a "zero points" loan. You'll get a higher mortgage rate than what Freddie Mac shows in its survey, but you'll pay fewer closing costs.

Today's low rates are terrific for both home buyers throughout Utah and existing homeowners looking to make a refinance. As compared last year at this time, mortgage rates are down by 98 basis points -- nearly one full percentage point.

Mortgage payments are much lower today as compared to July 2011 : 

• July 2011 : $512.64 principal + interest per $100,000 borrowed
• July 2012 : $455.77 principal + interest per $100,000 borrowed

Today's rates yield an 11 percent payment discount as compared to last year.

Mortgage rates are unpredictable so there's no guarantee that low rates will last forever, much less through the summer. If today's rates meet your household budget, consider locking something in.

Mortgage Rates Make New Lows At 3.66%

Mortgage rates have resumed their downward trend.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the national average 30-year fixed rate mortgage rate fell 5 basis points to 3.66% this week. The rate is available to "prime" borrowers who are willing to pay, on average, 0.7 discount points plus a full set of closing costs.

30-year fixed rate mortgage rates are down in seven of the last eight weeks but, depending where you live, the mortgage rates made available to you will vary. The Freddie Mac survey notes that mortgage rates vary by region.

For example, mortgage applicants in the West Region received the lowest rates from lenders, on average, but also paid the highest number of discount points. Discount points are a specific type of closing cost where 1 discount point is a fee equal to one percent of your loan size.

Average mortgage rates in the five U.S. regions, as tracked by Freddie Mac :

• Northeast Region : 3.70% with 0.7 discount points 
• West Region : 3.62% with 0.8 discount points
• Southeast Region : 3.68% with 0.7 discount points
• North Central Region : 3.65% with 0.7 discount points
• Southwest Region : 3.68% with 0.7 discount points

Nationally, one year ago, the average 30-year fixed rate mortgage rate was 4.50%. Today, it's 3.66%. This 84 basis points difference yields a monthly savings of $49 per $100,000 borrowed at today's rates, or $588 per year.

A $400,000 mortgage would save $2,352 annually at today's mortgage rates as compared to June 2011.

The 15-year fixed rate mortgage rate is also low, averaging 2.95% nationwide with 0.6 discount points. This is the second-lowest reading in recorded history. However, when the 15-year fixed averaged 2.94%, banks required an average of 0.7 discount points to get it. One could argue that this week's average rate-and-points combination is actually a better "deal" because closing costs are lower.

Mortgage rates continue to break new lows so, if you're eligible to refinance, the timing may be right to explore your mortgage options. Similarly, if you're in the market to buy a home, today's low rates will help to keep your home affordability high.

Talk to your loan officer about capitalizing on the lowest rates of all-time. Rates in Sandy may not rise starting next week, but when they do rise, they'll expected to rise quickly.

Mortgage Payments Fall To All-Time Lows

It's a money-saving time to be a Draper home buyer. Historically, mortgage rates of all types -- conventional, FHA, VA and USDA -- have never been lower and low mortgage rates make for low monthly payments. 

According to Freddie Mac's weekly mortgage rate survey, the average 30-year fixed rate mortgage fell to 3.67% nationwide last week for borrowers willing to pay 0.7 discount points at closing, plus a full set of closing costs. 0.7 discount points is a one-time closing cost equal to 0.7 percent of your loan size, or $700 per $100,000 borrowed.

Today's mortgage rates are a bargain as compared to just 1 year ago.

In early-June 2011, the average 30-year fixed rate mortgage nationwide was higher by 88 basis points, or 0.88%. If you are among the many U.S. homeowners who bought or refinanced a home around that time, refinancing to today's mortgage rates could save you 10% or more on your payment.  

Home buyers have measurably more buying power, too.

Here is how mortgage payments on a typical 30-year fixed rate mortgage have changed in 12 months :

• June 2011 : $509.66 principal + interest per $100,000 borrowed
• June 2012 : $458.59 principal + interest per $100,000 borrowed

Setting the math to a real-life example, a homeowner whose $350,000, 30-year fixed rate mortgage dates to last June would recognize monthly savings of at least $179 per month just by refinancing into a new 30-year fixed rate mortgage at today's current levels. That's more than $2,145 in payment savings per year.

Even after accounting for the required loan discount points and closing costs, the "break-even point" on a refinance like that can come quickly.

Mortgage rates have been dropping but there's no promise they'll fall forever. Once rates reverse higher, they're expected to rise sharply. Therefore, if you're planning to buy a home or refinance one in Utah , consider locking in a mortgage rate while mortgage rates are low.

The market looks good for that today.

30-Year Fixed Rate Mortgage Rates Fall To 3.78% Nationwide

For the fifth consecutive week, conforming 30-year fixed rate mortgage rates have dropped to new all-time lows.

According to this week's Primary Mortgage Market Survey from Freddie Mac, "prime" mortgage applicants willing to pay 0.8 discount points plus closing costs can secure a mortgage rate of 3.78%, on average.

This is a small improvement in rate over last week when the average 30-year fixed rate mortgage rate was 3.79% with 0.7 discount points.

1 discount point is equal to 1 percent of your loan size.

Like everything in real estate, though, mortgage rates are local. Freddie Mac reports that the mortgage rates available to consumers varied by region.

• Northeast Region : 3.78% with 0.7 discount points 
• West Region : 3.74% with 0.9 discount points
• Southeast Region : 3.79% with 0.7 discount points
• North Central Region : 3.83% with 0.6 discount points
• Southwest Region : 3.81% with 0.7 discount points

North Central Region residents currently pay the lowest fees and get the highest rates. For residents of the West, it's the opposite. Everywhere, however,mortgage rates are down. As compared to one year ago, today's monthly carrying cost for a conforming, 30-year fixed rate mortgage is lower by $50 per $100,000 mortgaged, or $600 per year.

A $300,000 mortgage would save $1,800 annually.

Mortgage rates have been dropping because Wall Street remains concerned for the futures of Greece, Spain, Italy and the European Union. Several European nations are at-risk for a sovereign debt default and Greece remains a threat to leave the EU. To protect against potential loss, investors have been moving money away from risky holdings toward safer ones -- a class that includes U.S. mortgage-backed bonds.

As demand for the bonds rise, prices do, too. This leads mortgage rates lower and so long as economic uncertainty remains, mortgage rates are expected to stay low.

Low mortgage rates make this a good time to buy or refinance a home. Talk to your loan officer to review your mortgage options.

Mortgage Rates Make New All-Time Lows (Again)

Conforming mortgage rates continue to drop.

For the second straight week, the 30-year fixed rate mortgage fell to a new, all-time low nationwide. According to Freddie Mac's weekly mortgage rate survey, the average 30-year fixed rate mortgage rate dropped 1 basis point to 3.83% this week for borrowers willing to pay 0.7 discount points plus a full set of closing costs.

The 15-year fixed rate mortgage also set a mortgage rate record, registering 3.05% with an accompanying 0.7 discount plus closing costs.

Discount points are a one-time, up-front closing cost, based on loan size. 0.7 discount points is equal to 0.7% of the borrowed amount. A home buyer in Draper opening a $200,000 mortgage and paying 0.7 discount points, therefore, would be subject to a one-time $1,400 fee paid at closing.

Borrowers wanting to avoid paying discount points can expect higher mortgage rates than Freddie Mac's reported national average.

Falling mortgage rates are nothing new throughout Utah. Since peaking in February 2011, mortgage rates of all types have been in steady decline. The 30-year fixed rate mortgage has shed 122 basis points since that date, falling from 5.05%; the 15-year fixed rate mortgage has shed 124 basis points, falling from 4.29%.

Low mortgage rates give today's home buyers additional purchasing power, stretching home affordability to new heights.

Low rates also help existing homeowners to lower monthly mortgage payments. For example, as compared to mortgage rates just 15 months ago, homeowners refinancing into today's 30-year fixed rate mortgage stand to save 13.4 percent on their respective mortgage payments. 

A comparison :

• February 2011 : $539.88 principal + interest per $100,000 borrowed
• May 2012 : $467.67 principal + interest per $100,000 borrowed

A homeowner with a $300,000 mortgage at February 2011 30-year fixed rate mortgage rates would save $2,600 annually with a refinance to this week's low rates. Even accounting for discount points and closing costs, the "break-even point" on savings like that comes relatively quickly.

Mortgage rates can't be predicted so there's no guarantee of low rates forever. If today's rates meet your budget, consider locking something in. Speak with your loan officer about your options.

Mortgage Rates Fall For Third Straight Week

After a brief surge north of 4 percent last month, mortgage rates have settled down, near their lowest levels of all-time.  

According to Freddie Mac's weekly Primary Mortgage Market Survey, for applicants willing to pay 0.7 discount points plus a complete set of closing costs, the average 30-year fixed rate mortgage rate fell to 3.88 percent this week.

0.7 discount points adds $700 to your mortgage closing costs for each $100,000 borrowed.

Mortgage rates are down this week on "safe haven" buying. The move is triggered by Wall Street's concern that Spain and Italy will have trouble servicing their respective sovereign debt. In response, investors are selling risk-heavy assets and using the proceeds to purchase U.S. government-backed bonds.

This creates demand for mortgage bonds which, in turn, pressures mortgage rates lower.

The storyline is similar to what transpired in Greece last year, and, at least for now, it gives South Jordan home buyers reason to cheer. So long as economic uncertainty remains, mortgage rates may stay low.

Of course, like all things in real estate, though, mortgage rates are local. Rates offered by banks varied by region.

Freddie Mac's survey of 125 banks showed the following regional breakdown :

• Northeast Region : 3.88% with 0.8 discount points 
• West Region : 3.85% with 0.8 discount points
• Southeast Region : 3.91% with 0.8 discount points
• North Central Region : 3.89% with 0.6 discount points
• Southwest Region : 3.90% with 0.8 discount points

The best mortgage "deals" are currently available to North Central Region residents. The most expensive loans are for those in the Southeast.

Relative to history, though, all mortgage rates look inexpensive. Conforming 30-year fixed rate mortgage rates have never been as low as they are today. It's a bonus for home buyers because cheap mortgage rate yield cheap mortgage payments. Home affordability remains near all-time highs.  

If you're unsure of whether now is a good time to buy or refinance, the answer is yes. Talk to your loan officer to review your mortgage options.

Mortgage Rates Fall Back Below 4%

After a brief run-up two weeks ago, mortgage rates are back below 4 percent. It's good news for home buyers and mortgage rate shoppers of Sandy because with lower mortgage rates come lower mortgage payments.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the national, average 30-year fixed rate mortgage rate fell to 3.99 percent this week from last week's 4.08 percent.

Last week had marked the first time since December 2011 that the benchmark rate crossed north of 4 percent -- a span of 16 weeks.

And, it wasn't just rates that got cheaper this week -- closing costs dropped, too.

Freddie Mac's survey showed that the average number of discount points to accompany a 30-year fixed rate mortgage fell one-tenth of a percent this week to 0.7, where one discount point is equal to one percent of your loan size.

As a real-life example, a $200,000 mortgage with an accompanying 0.7 discount points would be subject to an additional $1,400 one-time closing cost. Last week, that cost was $1,600.

Note, though, that these are average mortgage rates for the nation. On a local level, rates may be higher or lower, and so may the accompanying number of discount points.

For example, in this week's Freddie Mac survey, each U.S. region boasts its own "average rate" :

• Northeast Region : 4.00% with 0.7 discount points
• West Region : 3.94% with 0.9 discount points
• Southeast Region : 4.01% with 0.8 discount points
• North Central Region : 3.99% with 0.6 discount points
• Southwest Region : 4.02% with 0.8 discount points

These rates are each well below the average rates of a year ago when the average 30-year fixed rate mortgage was 4.86%. 

Low mortgage rates can't last forever so if you've been wondering whether now is a good time to buy a home or refinance one; or whether rising rates will harm your monthly budget, the answer may be yes. A weak economy held mortgage rates low last year. An improving economy should push rates higher this year.

Talk to your loan officer and review your home loan options. Looking ahead to spring and summer, mortgage rates appear poised to rise.

Lock An Instant 13% Savings On Your Monthly Mortgage Payment

Falling mortgage rates make owning a home more affordable. Mortgage rates are directly tied to monthly mortgage payment so as mortgage rates drop, so does the cost of home-ownership.  

It's a money-saving time to buy a home in Sandy -- or to refinance one. Mortgage rates have never been this low in history.

According to Freddie Mac, last week, the average 30-year fixed rate mortgage fell to 3.87% nationwide for borrowers willing to pay an accompanying 0.8 discount points plus closing costs. 0.8 discount points is a one-time closing cost equal to 0.8 percent of your loan size, or $800 per $100,000 borrowed.

This represents an incredible value as compared to February of last year. 

It was exactly one year ago that mortgage rates begin their long slide lower. On February 11, 2011, the 30-year fixed rate mortgage reached its peak for the year, reading 5.05% in Freddie Mac's nationwide survey. If you are among the many U.S. households that bought or refinanced a home around that time, you could choose to replace your current home loan with a new one and save close to 13% on your monthly mortgage payment.

13 percent saved on your mortgage is a noteworthy statistic.

Look at this 30-year fixed rate mortgage payment comparison over the last 12 months :

• February 2011 : $539.88 principal + interest per $100,000 borrowed
• February 2012 : $469.95 principal + interest per $100,000 borrowed

Because of falling mortgage rates, a homeowner with a $250,000 30-year fixed rate mortgage would save at least $175 per month just by refinancing into a new loan at today's mortgage rates. That's $2,100 in savings per year. 

Even after accounting for discount points and closing costs, the "break-even point" on a mortgage like that can come relatively quickly.

We can't predict mortgage rates so there's no promise rates will stay like this forever. If you're planning to buy a home or refinance one, the best way to keep your monthly payments down is to lock your rate while rates are still low.

The market looks ripe for that now. 

Adjustable-Rate Mortgages Are A Relative Bargain Today

For buyers and refinancing households throughout Utah , adjustable-rate mortgages are a relative bargain as compared to fixed-ones.

According to Freddie Mac's weekly survey of more than 125 banks nationwide, Draper mortgage applicants electing for a conventional ARM over a conventional fixed-rate mortgage will save 105 basis points on their next mortgage rate.

"Conventional" loans are loans backed by Fannie Mae or Freddie Mac.

Today's average, conventional 30-year fixed rate mortgage rate is 3.91% plus points and closing costs. The average rate for a comparable 5-year ARM is 2.86%, plus points and closing costs.

In other words, for every $100,000 borrowed, a conventional 5-year adjustable-rate mortgage will save you $58.15 per month, or $698 per year.

That's a 12 percent savings just for choosing an ARM.

12 percent is a big figure that adds up over 5 years -- especially for households that plan to sell within those first 60 months anyway. There is little sense in paying the mortgage rate premium for a 30-year fixed-rate mortgage when a 5-year ARM is perfectly suitable.

For the reason why adjustable-rate mortgages continue are so much lower than their fixed-rate counterparts, look no further than the U.S. economy. ARMs reflect Wall Street's short-term economic expectations; whereas fixed-rate mortgages reflect medium- to long-term expectations.

In the short-term, analysts expect the U.S. economy to grow slowly, with low levels of inflation. This supports the U.S. dollar, the currency in which mortgage bonds are denominated. When the dollar is strong, demand for mortgage bonds tends to increase.

This supports lower interest rates.

Conversely, over the longer-term, inflation is expected to return, which devalues the dollar and everything paid in it (e.g.; mortgage-backed bonds). This is why inflation is linked to higher mortgage rates. When inflation is present in the economy, mortgage bonds lose value, driving mortgage rates up.

Adjustable-rate mortgages aren't perfect for everyone, but in the right situation, they can be a big money-saver and a helpful tool for stretching a household budget. Given today's rates, the money-saving potential is larger than usual.

Before you choose an ARM, discuss your options with your loan officer.

Mortgage Payments Fall 12% Since February 2011

As mortgage rates drop, so do housing payments. It's a good time to consider refinancing your home, or making an offer on a new one. Mortgage payment affordability has never been so high in history.

According to Freddie Mac, the average 30-year fixed rate mortgage rate is now 3.94 percent -- an all-time low -- with an accompanying 0.8 discount points. This means that in order to get access to the 3.94 percent rate, Draper  homeowners and home buyers should expect to pay a loan fee equal to 0.8% of the borrowed amount, plus "normal" closing costs.

Last week, the average 30-year fixed rate mortgage rate was 3.99 percent with an accompanying 0.7 discount points.

Mortgage rates in Utah have been in decline for most of the year. Since peaking in early-February, the average home owner's principal + interest payment on a 30-year fixed rate mortgage had now dropped by 12.2 percent.

Here is how mortgage payments compare, then and now, not accounting for your individual tax-and-insurance escrow :

• February 10, 2011 : Payment of $539.88 per $100,000 borrowed
• December 15, 2011 : Payment of $473.96 per $100,000 borrowed

For existing homeowners, the dramatic drop in payments is reason to reach out to your loan officer. A refinance could save you tens of thousands of dollars over the life of your loan -- especially if you chose to refinance your mortgage into a 15-year program.

The 15-year mortgage, says Freddie Mac, is also at an all-time low, registering 3.21 percent with 0.8 discount points, on average.

For home buyers, today's low rates present an interesting opportunity.

Mortgage rates are the key factor in determining your monthly housing payment so, with average mortgage rates below 4 percent, it's no wonder home affordability is cresting. However, the housing market is showing signs of recovery. Home supplies are dwindling, buyer demand is rising, and the economy appears to be mending.

Home prices are expected to rise in 2012 and, as they do, they'll take housing payments with them. The best time to buy a home may be now; before the recovery completes.

Reduce Long-Term Loan Costs With A 15-Year Fixed Rate Mortgage

For as low as 30-year fixed rate mortgage rates are in Utah today, 15-year fixed rate mortgage rates are even lower.

According to Freddie Mac's weekly mortgage rate survey, the average 15-year fixed rate mortgage rate is now 3.27% nationwide with an accompanying 0.8 discount points. 1 discount point is a closing cost equal to 1 percent of your loan size.

The current 15-year fixed rate reading is just one tick above the all-time, 15-year fixed rate mortgage low of 3.26% set in October 2011.

If you've ever thought of "going 15", it's a terrific time to talk to your lender.

The primary benefit of using a 15-year fixed rate mortgage as opposed to a 30-year fixed rate one is that a 15-year fixed rate mortgage dramatically cuts the long-term interest costs of your loan. The downside is that monthly payments are relatively large.

At today's mortgage rates, per $100,000 borrowed :

• 15-year fixed rate mortgage : $704 principal + interest monthly
• 30-year fixed rate mortgage : $477 principal + interest monthly

So, for homeowners opting for a 15-year fixed rate mortgage, the monthly principal + interest payments will be 48% higher as compared to a 30-year fixed rate mortgage of the same loan size. Long-term, however, because the 15-year fixed rate mortgage interest rate is lower and because it pays off in half the time of a 30-year loan, a homeowner will save $45,000 in interest costs per $100,000 borrowed.

$45,000 per $100,000 borrowed is a huge amount of savings. It's monies that can be used for college tuition, home improvement projects, retirement savings, or anything else. 

That said, the 15-year fixed rate mortgage is not ideal for everyone.

Because it requires higher monthly payments, a 15-year fixed rate mortgage may add stress to your household budget. Furthermore, once you commit to a 15-year loan term with your lender, you can't revert back to a 30-year loan term without a refinance and refinances can be costly.

Therefore, be sure of yourself when selecting a 15-year fixed rate loan. The rewards are great, but the risks can be, too.

Have Mortgage Rates Bottomed Out?

Mortgage rates have troughed. Or, so it seems.

According to Freddie Mac's weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage is 4.00 percent nationwide -- roughly the same rate as it's been for 5 weeks. 

During that times, rates have ranged between 3.97 and 4.02 percent with an accompanying 0.7 discount points, plus "typical" closing costs. Closing costs vary by state and 1 discount point is equal to 1 percent of your loan size.

In other words, to get the weekly, published Freddie Mac rate, borrowers in Utah should expect to pay a complete set of fees to their respective lenders. The larger the loan, the higher the costs. "Low-fee" and "no-fee" loans are available, too -- typically in exchange for a slightly rate.

A breakdown of the Freddie Mac survey shows that interest rates and discount points vary by region. Typically, states in the West Region offer the lowest rates but with the highest costs. East Region states work in reverse; rates are often highest but the accompanying points are fewest.

The most recent mortgage rate breakdown by region shows :

• Northeast Region : 4.00% with 0.7 discount points 
• West Region : 3.96% with 0.8 discount points
• Southeast Region : 4.06% with 0.9 discount points
• North Central Region : 3.97% with 0.7 discount points
• Southwest Region : 4.04% with 0.7 discount points

What's most notable, though, is that in all 4 regions, rates are well below their 2011 highs. Since mid-April, mortgage rates have been in descent, dropping for 5 consecutive months before reaching to their current, "rock-bottom" levels in early-November.

Since then, however, rates have idled and the forces that combined to make rates low throughout Draper are subsiding. The U.S. economy is showing signs of a rebirth; the Eurozone is edging closer to solvency; and the housing market is recovering.

So, if you've been wondering whether now is a good time to refinance, or whether higher rates will harm home affordability, the answer is yes. Get in touch with your loan officer to review your home loan options because, looking ahead to 2012, mortgage rates look poised to rise.

Conforming Loan Limits Unchanged For 2012

A conforming mortgage is one that, literally, conforms to the mortgage guidelines as set forth by Fannie Mae and Freddie Mac. 

Conforming mortgage guidelines are Fannie's and Freddie's eligibility standards; an underwriter's series of check-boxes to determine whether a given loan should be approved.

Among the many traits of a conforming mortgage is "loan size".

Each year, the government re-assesses its maximum allowable loan size based on "typical" housing costs nationwide. Loans that fall at, or below, this amount meet conforming mortgage guidelines. Loans in excess of this limit are known as "jumbo" loans.

Between 1980 and 2006, as home values increased, conforming loan limits did, too, rising from $93,750 to $417,000. Since 2006, however, despite falling home prices in many U.S. markets, the conforming loan limit has held steady.  This will remain true for 2012 as well. 

In 2012, for the 7th straight year, the national, single-family conforming mortgage loan limit will remain at $417,000.

The complete 2012 conforming loan limit breakdown, by property type :

• 1-unit properties : $417,000
• 2-unit properties : $533,850
• 3-unit properties : $645,300
• 4-unit properties : $801,950

However, there are some areas nationally that have earned "loan limit exceptions" based on the local median sales prices. These areas are known as "high-cost" areas and loan limits within these regions range from $417,001 to a maximum of $625,500.

Some examples of high-cost areas include San Francisco (along with a most of California), New York City, and most of Hawaii and Alaska. Nationally, there are approximately 200 such "high-cost" areas.

Verify your local conforming loan limit and loan limits across Utah via the Fannie Mae website. A complete county-by-county list is published online.