Mortgage Interest Rates Take a Tumble

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According to an article recently written by Mike Sante published by Interest.com, mortgage rates this year have gone down. This is great news for home-buyers because just about every expert in late 2013 said mortgage rates had nowhere to go but up in 2014. The year started off with the average 30-year, fixed-rate mortgage costing 4.69%. The general consensus among economists and industry analysts was that it would rise to 5.5% by the end of the year.

So was this forecast correct?

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The average price of a 30-year, fixed-rate home loan tumbled as low as 4.25% in May and is just 4.31% in the most recent weekly survey of major lenders.

To everyone’s surprise we’re actually enjoying lower mortgage rates than we did last summer.

National Average Mortgage Rates

Type of loan Current average Record-low average Established
30-year fixed rate 4.31% 3.50% Dec. 5, 2012
15-year fixed rate 3.41% 2.75% May 1, 2013
30-year fixed jumbo 4.33% 3.93% May 1, 2013
5/1 ARM 3.33% 2.63% May 1, 2013

 

Home loans are cheaper to obtain making it easier to purchase your dream home all the more possible.

As time goes by, we’ll just have to keep an eye on the numbers to see if the rate keeps tumbling down.

To read this article and many others, visit www.interest.com.

Best,

DBK

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