Mortgage Rates remain very attractive for buyers

Freddie Mac : Mortgage Rates fall 2 basis points (0.02%) to 4.12%

CURRENT MORTGAGE RATES AVERAGE 4.12%

For the sixth time in 9 weeks, and the twentieth time this year, 30-year mortgage rates are down across all mortgage loan types including FHA loans, USDA loans, VA loans, and conventional loans backed by Fannie Mae and Freddie Mac.

Mortgage rates have moved to a 14-month low; and 15-year fixed and adjustable-rate mortgage rates are down, too.

It’s an excellent time to comparison shop today’s mortgage rates. Many U.S. homeowners are “in the money” to refinance.

30-YEAR MORTGAGE RATES AT 14-MONTH BEST

According to Freddie Mac’s Primary Mortgage Market Survey (PMMS), the average 30-year fixed-rate mortgage rate fell 2 basis points (0.02%) this week to reach 4.12%. The rate is available to borrowers paying 0.6 discount points at closing plus a full set of closing costs.

It’s a small change from the week prior, and consistent with how the market has moved since May.

Over the last 12 weeks, 30-year rates have changed by an average 2.3 basis points (0.023%) per week, marking the longest period of time in history through which rates have remained this steady. Comparison shopping is simpler during periods of mortgage rate stability.

The average 15 Year Mortgage Rate fell last week, too, easing 3 basis points (0.03%) to 3.24%.

Rates are based on a weekly survey of more than 100 U.S. banks. The survey has banks submit to Freddie Mac their “going rate” for a prime mortgage borrower.

A prime borrower is one with a credit score of 740 or higher; with a purchase downpayment of twenty percent or more; with a debt-to-income ratio which meets mortgage guidelines; and, with ample reserves to support a mortgage approval.

Loans for prime borrowers are loans made against single-family residences which includes detached homes, certain town homes and attached properties; and, condos which meet minimum eligibility standards.

The Freddie Mac survey and figures are for conventional loans only.

Since reaching a multi-year high of 4.57% in September, conventional rates have made a sustained run lower. Rates are at their low point for the year, and just two basis points above the lowest rate of the last 60 weeks.

Many lenders now quote rates in the threes.

At 4.12%, today’s 30-year fixed rate mortgage is cheap. It’s less than half of the 30-year loan’s historical average, and the number of discount points required to get a 30-year loan are few fewer than it was even last decade.