Interest Rates Fall to Lowest Point in Over a Month
Mortgage News Daily shows the interest rate as of November 24 for a 30 year fixed mortgage was 3.95%. An FHA 30 year fixed rate is even lower, at 3.50%.
These are the lowest daily rates we’ve seen since mid-October.
Home buyers should take advantage of these rates to save on their monthly mortgage payment on the purchase of a home. For instance, 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 3.95%, the monthly loan would drop to $1,661, a difference of over a hundred dollars a month. 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.
This drop in rates emphasizes what we reported last month: that all the right conditions are in place to make this the best time to purchase a home we’ve seen in years. With lower interest rates, an increased inventory of homes on the market, and a loosening of FHFA mortgage guidelines to allow lower down payments, buyers should think about buying now rather wait until the spring. There’s no guarantee that these rates will be this low in the coming months.
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 3.80% in comparison to 3.95% 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.