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.
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.
Like all things in real estate, mortgage rates are local. Freddie Mac's survey showed the following regional breakdown :
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.
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.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2016 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)