Real Estate
Local Mortgage Rates Drop To New Lows, Buyers Finally Budge
Compare mortgage rates in your neighborhood to find out how much home you can afford this week. [SPONSORED]
Mortgage rates have dropped to a 10-month low, giving homeowners another reminder that they ought to refinance for a better deal and giving homebuyers a fresh reason to get shopping.
Low supplies of homes have fueled high prices that have been discouraging buyers, but there’s a new report suggesting some buyers are finally getting off the fence. Mortgage applications rose 3.3 percent in the week ending Sept. 1, according to the Mortgage Bankers Association.
You can use Bankrate’s mortgage calculator to estimate your monthly payments and see what the effects of making extra payments would be. It will also help you calculate how much interest you’ll pay over the life of the loan.
Compare Today's Local Mortgage Rates Here:
Looking to stay ahead of the financial game? Bankrate is here to fill you in on what's happening around the country this week:
Lowest rates since November
Mortgage rates are down for the third week in a row, to levels last seen around last year’s election, and the Federal Reserve may help to keep rates low. In recent days, three Fed policymakers have suggested that weak inflation may cause the central bank to rethink its plan to raise interest rates again before the end of this year.
In a recent Bankrate survey, top economic forecasters thought a rate hike was likely to come in December.
The Fed has a meeting scheduled for later this month, and on Wednesday it released its latest Beige Book economic survey, which will set the stage for the meeting. The report says the economy has been expanding at a modest to moderate pace, and it notes that “low inventories of homes for sale continued to weigh on residential real estate activity across the country.”
Mortgage rates fall
The benchmark 30-year fixed-rate mortgage fell this week to 3.95 percent from 3.97 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 3.56 percent. Four weeks ago, the rate was 4.04 percent. The 30-year fixed-rate average for this week is 0.49 percentage points below the 52-week high of 4.44 percent, and is 0.41 percentage points above the 52-week low of 3.54 percent.
The 30-year fixed mortgages in this week’s survey had an average total of 0.28 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.08 percent. This week’s rate is 0.13 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage fell to 3.17 percent from 3.20 percent.
- The 5/1 adjustable-rate mortgage fell to 3.45 percent from 3.47 percent.
- The 30-year fixed-rate jumbo mortgage was flat at 3.99 percent.
At the current 30-year fixed rate, you’ll pay $474.54 each month for every $100,000 you borrow, down from $475.69 last week.
At the current 15-year fixed rate, you’ll pay $698.79 each month for every $100,000 you borrow, down from $700.24 last week.
At the current 5/1 ARM rate, you’ll pay $446.26 each month for every $100,000 you borrow, down from $447.37 last week.
Want to see where rates are right now? Compare Mortgage Rates In Your Area
Photo credit: Gus Rubalio via Unsplash
