Fixed mortgage rates have continued to slide with 30-year fixed rates falling to a 3-month low of 3.61 percent. According to Bankrate, the average 30-year fixed mortgage rate has an average of 0.32 discount and origination points.
The average rate for 15-year fixed mortgage rates climbed back to 2.85 percent while jumbo 30-year fixed mortgage rates reached a mid-December low of 3.98 percent.
Jumping to 3.12 percent was 3-year ARM rates while 5-year ARM rates fell to a new low of 2.66 percent.
According to Bankrate, the shift in fixed and ARM mortgage rates has been largely due to economic shifts abroad alongside stock market volatility. Mortgage rates have lowered for five consecutive weeks.
Mortgage rates have not climbed above five percent since April 2011. The study found that a $200,000 loan in April 2011 would cost $1,082.22 per month while that same loan today runs just $910.41.
Here are the full survey results from the recent mortgage analysis:
- – 30-year fixed: 3.61% — down from 3.64% last week (avg. points: 0.32)
- – 15-year fixed: 2.85% — down from 2.89% last week (avg. points: 0.31)
- – 5/1 ARM: 2.66% — down from 2.70% last week (avg. points: 0.26)
The survey focused on the top 10 banks in the United States.
While Bankrate places the cost of a 30-year fixed-rate at 3.61 percent, national lender Freddie Mac has posted a 30-year fixed-rate mortgage average of 3.41 percent.
The Los Angeles Times notes that many buyers are choosing to buy discount points on their mortgages. The purchasing of discount points lowered a buyers interest rate and therefore their monthly payments.
Buyers who take advantage of a $200,000 loan at rates today compared to April 2011 can expect an overall 30-year savings amount equal to $63,000.
Are you more likely to take advantage of a 30-year fixed-rate mortgage when it dips below 4 percent?
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