30-Year Mortgage Rates Drop To 3.88%
Mortgage rates are back below 4 percent again. If you missed the lowest rates of all-time earlier this year, you get a second chance.
Average 30-Year Mortgage Rate To 3.88%
Each week, government-led Freddie Mac surveys 125 banks nationwide to compile its Primary Mortgage Market Survey. For mortgage applicants willing to pay 0.7 discount points plus a complete set of closing costs, the average 30-year fixed rate mortgage rate fell to 3.88 percent this week.
For a mortgage in the Silicon Valley area of California at the local conforming loan limit of $625,000, 0.7 discount points adds $4,378 to your mortgage closing costs.
The reason mortgage rates are down might sound familiar. Beginning last week, concerns bubbled up across the Eurozone that both Spain and Italy could have trouble servicing their respective sovereign debt. The storyline is similar to what transpired in Greece last year. The action sparked a mortgage bond rally as investors sought to shed portfolio risk.
Minnesota Gets The Lowest Mortgage Rates
Like all things in real estate, mortgage rates are local. Freddie Mac's survey showed the following regional breakdown :
- Northeast Region : 3.88% with 0.8 discount points
- West Region : 3.85% with 0.8 discount points
- Southeast Region : 3.91% with 0.8 discount points
- North Central Region : 3.89% with 0.6 discount points
- Southwest Region : 3.90% with 0.8 discount points
The best mortgage "deals", on average, are currently available to residents of Minnesota and Illinois. The most expensive loans are those being quoted in the Southeast including Florida and Atlanta.
Lowest Mortgage Rates Of All-Time. Again.
Although the Freddie Mac survey covers conforming mortgage only, FHA mortgage rates are down, too. Across the board, mortgage rates have never been as low as they are today. Cheap mortgage rates yield cheap mortgage payments and keeps home affordability high.
If you've yet to refinance your home, or find yourself just kicking tires, get started with a mortgage rate.