Mortgage rates this week continued to be stable at record lows which is the result of the slow economic recovery that has become somewhat worrisome to investors. On the bright side, this give consumers more time to get in and take advantage of low mortgage rates and low home prices, a double opportunity that does not happen often. Freerateupdate.com's survey of wholesale and direct lenders show that this past week low mortgage rates remained flat as news from around the globe continues to influence markets.

Current 30 year fixed mortgage rates are at 3.875% and 15 year fixed mortgage rates are at 3.250%. 5/1 adjustable mortgage rates are at 2.625%. For borrowers who want a steady mortgage payment for the life of the loan, conforming fixed mortgage rates have never been so low. Those who fully understand adjustable mortgages can get in below 3% for a period of time and really save some money. These low mortgage rates are available with 0.7 to 1% origination fee to borrowers who have maintained good credit and can meet lender guidelines for approval.

FHA mortgages have continued to be on the rise as consumers look at the benefits that they offer. When credit is not the best, FHA is the way to go for borrowers since they have easier credit qualifying which does not affect low FHA mortgage rates. Also stable this week, FHA 30 year fixed mortgage rates are at 3.750% and FHA 15 year fixed mortgage rates are at 3.500%. FHA 5/1 adjustable mortgage rates are at 2.750%. Even though slightly higher than conforming mortgage rates, FHA allows borrowers to use approved gifts towards the mortgage. In addition, housing grants and bonds can also be used in the transaction. For these reasons, many borrowers are not concerned with FHA closing costs (APR) which tend to be higher because of the upfront mortgage insurance premium and other FHA fees.

For those in need of jumbo mortgage loans, jumbo mortgage rates remain stable and have never been better. Jumbo 30 year fixed mortgage rates are at 4.500%, jumbo 15 year fixed mortgage rates are at 4.375% and jumbo 5/1 adjustable mortgage rates are at 3.250%. Borrowers need to have excellent credit to obtain these lowest jumbo mortgage rates with 0.7 to 1% origination point since these loans are not government insured. Banks often keep jumbo mortgage loans in their portfolio and, therefore, have stricter guidelines when approving them.

European banks continued to make headlines in the news this week as everyone waits to see what will happen with Greece. MBS prices (mortgage backed securities), which can be affected by headlines, also influence the direction of mortgage rates which move in the opposite direction. Economic data showed that retail sales and wholesale prices were flat in August and jobless claims increased for the week ending September 9th. For the good news, consumer sentiment and mortgage applications increased. Home builder outlook is poor this month which is just more evidence that the housing market continues to be sluggish. More consumers who are staying put turned to remodeling in July instead of purchasing. Depending on investor reactions to news this week, if MBS markets rally, there is the possibility that mortgage rates may hit new lows.

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.

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