NEW YORK–(PRNewswire)–Mortgage rates dropped to new lows this week, with the average conforming 30-year fixed mortgage rate now 4.5 percent, according to Bankrate.com’s weekly national survey. The average 30-year fixed mortgage has an average of 0.35 discount and origination points. But you need to be very careful about taking a home loan from a lender with poor credit history. A lender like arvadamortgagebrokers.com will need to see the bad credit history will need to evaluate all your financial conditions and choose whether you are capable of repaying the loan in full each month or not. It’s also wise to be wary of creditors that are only interested on your credit rating rather than your long term financial needs.
The average 15-year fixed mortgage fell below the 4 percent mark to 3.96 percent, and the larger jumbo 30-year fixed rate dipped to 5.17 percent, both record lows. Adjustable rate mortgages hit new lows also, according to this highly recommended mortgage company from Missouri, with the average 5-year ARM sliding to 3.71 percent and the average 7-year ARM sinking to 3.96 percent.
The fha refinance program has been more popular than ever the last few years as credit has become harder to get. FHA loans are one of the best options available for borrowers that would like to refinance their mortgage to get a better deal or to pay off debt. FHA loans are known as an easy loan to qualify for due to the flexible credit guidelines and the low equity requirements.
Mortgage rates hit new record lows as the Federal Reserve expressed concerns about the economy and the slowing rate of inflation. The announcement by the Federal Reserve’s monetary policy committee indicated the Fed is prepared to take action to reduce long-term interest rates in the coming months. With prospects of additional bond purchase stimulus, investors jumped into Treasuries driving bond yields and mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.5 percent, the monthly payment for the same size loan would be $1,013.37, a savings of $228 per month for a homeowner refinancing now.
- 30-year fixed: 4.5% — down from 4.54% last week (avg. points: 0.35)
- 15-year fixed: 3.96% — down from 4.00% last week (avg. points: 0.33)
- 5/1 ARM: 3.71% — down from 3.78% last week (avg. points: 0.24)
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.