Interest Rates Just Dropped for the Third Straight Week
Mortgage News Daily shows the interest rate as of October 9 for a 30 year fixed mortgage was 4.06%. An FHA 30 year fixed rate is even lower, at 3.75%.
“These are the best rates I’ve seen in a year and a half,” says mortgage broker Shant Banosian.
Keep in mind these are average rates. The rate you get will depend on how much you put down and which type of mortgage you get.
“Some clients can get rates even lower than this,” added Banosian. “If they put a large down payment they could get a rate in the high 3% range.”
For the week ending October 9th, average interest rates for a 30 year fixed fell to 4.12%, which was the lowest it’s been since the week ending September 11th, and down from 4.53% at the start of the year. Mortgage rates for so-called jumbo loans (loans above the loan limits set by Fannie Mae and Freddie Mac) are actually lower than conforming mortgage rates. Today’s rate for a jumbo 30 year fixed is 3.95% in comparison to 4.06% for a 30 year conforming loan. For years, rates for jumbo loans were higher than conforming mortgage rates. Conforming loans have become more expensive because Fannie Mae and Freddie Mac have raised their fees they charge to lenders. This means home buyers who have good credit and a large down payment and who borrow a little more can get a lower interest rate.
Home Buyers Should Take Advantage of Low Rates Now
These low rates are good news for home buyers. “A client who locks in this rate today can save $100-$250 a month compared to just a few months ago,” Shant Banosian said. In January when the average conventional rate at 4.53%, a monthly payment on a $350,000 loan would be $ 1,780. With today’s rate of 4.06%, the monthly loan would drop to $1,683 a difference of almost a hundred dollars a month. Home buyers should take advantage of these low rates now before they go back up.