As a result of some optimism in real estate industry reports, there has been a notable increase in home buyers seeking excellent deals on mortgage rates. The number of homes under agreement increased by 4.1 percent in March 2012. This is an increase of 12.8 percent from the preceding year. Existing home sales showed better performance than new home sales, which actually experienced a decrease of 7.1 percent since February 2012. Despite new home decreases in 2012, there has been a 7.5 percent increase since March 2011.

Current mortgage rates are stable and low. A 3.75%, 30 year fixed, conforming mortgage is available for qualified buyers. 15 year fixed mortgage loans are available for 3%, and 5/1 ARMS are 2.375%. Loan origination fees are .7 to 1 point for those who qualify.

The HARP 2.0 home refinance program might influence many homeowners to stay in their homes. Under HARP, there is no maximum LTV ratio, so many homeowners can refinance at lower interest rates. This popular program will be effective until the end of next year and will assist millions of people.

March applications for FHA mortgages were frantic, but requests have slowed, due to an increase in initial and recurring mortgage insurance premiums, that went into effect on April 9, 2012. FHA rates are 3.375% for 30 year fixed, 2.875% for 15 year fixed and 2.875% for 5/1 ARM. FHA mortgages are extremely popular because they have a required down payment of only 3.5% of the sale price of the home. The source of the payment can be a gift or grant program. Although FHA fees have increased recently, these fees can be added to the mortgage, thus it continues to be highly affordable. With these low mortgage loan rates, sellers are saying “Sell my house” with new optimism.

Jumbo mortgage loans have the following rates, 4.250% for 30 year fixed, 3.375% for 15 year fixed and 2.5% for 5/1 ARM. Qualified borrowers can get .7 to 1 point loan origination fees. They are more difficult to obtain than ordinary loans and have stringent qualifying requirements.

The overall outlook for home purchasing seems cautiously positive. The Case Shiller index has gone down by 3.5% in the last year. Jobless figures are lower than they have been, yet higher than anticipated. The economy is slowly improving, but there is anxiety over the somewhat unstable economic situation in Europe. Extremely promising news is the 2.2% increase in our Gross Domestic Product in the first quarter of 2012. Consumer confidence as well as personal income have increased as well. For those who say “Sell my house”, the outlook is much brighter than before.