Factors Influencing Mortgage Rates As 2011 Approaches

Today, two days before the start of 2011, your plans for New Years Eve might be fresher in your mind than current mortgage rates. Before you set your plans for New Years, visit Total Mortgage’s site and take a brief minute to check the current mortgage rates. Perhaps an appropriate New Years resolution may be to save money by refinancing your current mortgage and reducing your monthly payments. Another logical resolution might be to pay off your home loan sooner by refinancing into a shorter term.

News Roundup:

Mortgage rates continued to climb this week, with the average conforming thirty-year fixed mortgage rising to 5.02%, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.44 discount and origination points.

Initial claims for state unemployment benefits declined 34,000 to a seasonally adjusted 388,000, as reported by the Labor Department. This figure was almost 30,000 less than analysts’ predictions of 415,000. A slight decline in jobless claims indicates that the economy is improving and that mortgage rates might be rising. The four-week average of new jobless claims, considered to be a more accurate benchmark of unemployment trends, dropped 3.02 percent to 414,000, the lowest level since the week ending July 26, 2008.

China’s yuan hit a record-high value against the U.S. dollar late Thursday. The yuan has now risen 1.2 percent from a low hit on Dec. 20, marking one of its fastest series of gains since the currency was depegged from the dollar in mid-June, reported Reuters. It has now gained 3.4 percent since the depegging. Trading professionals predict the yuan will increase even more in 2011.

If you are attempting to secure a larger loan amount you may with to apply for a jumbo mortgage. When the loan amount for a home is larger than the conforming loan limits set by Fannie Mae and Freddie Mac, borrowers must apply for jumbo mortgages. The conforming loan limits for single-family homes range from $417,000 to $729,750 depending on where the property is located. Total Mortgage offers 30 year fixed jumbo mortgages at 5.375% and 5.588% APR while additionally offering 15 year fixed jumbo mortgages at a 4.000% rate and 4.349% APR.

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