Mortgage rates today are at historic lows – a sign that the market has finally caught up to the housing bubble. 30-year fixed-rate mortgages, 5-year adjustable-rate mortgages, and jumbo mortgages have all seen massive drops in interest rates. But how do you compare the mortgage rates today? This article will give you a few tips for shopping around with confidence. But, remember, not all lenders are created equal!
Interest rates on 30-year fixed-rate mortgages have plummeted
The interest rates on 30-year fixed-rate mortgages are still relatively low compared to a year ago, with the average payment of 0.8 points. However, the rates on adjustable-rate mortgages have decreased, making them a more appealing option to those looking to refinance. Although 30-year fixed-rate mortgages are still the most popular type of mortgage, they are still more expensive than adjustable-rate mortgages.
A $300,000 fixed-rate mortgage at 4% will cost you $510 per month. While the monthly payment on a 15-year mortgage is larger than on a 30-year mortgage, you will save thousands in interest over the life of the loan, and will build equity much faster. A 5-year ARM, on the other hand, has an average rate of 4.12 percent, down 11 basis points from last week.
Interest rates on 5-year adjustable-rate mortgages have plummeted
Mortgage rates have gone down this week, but averages on the 30-year and 15-year fixed-rate mortgages dropped even more. Meanwhile, rates on the five-year adjustable-rate mortgage rose by 0.4 percentage point to 4.29 percent, compared to 2.45 percent a year ago. The latest figures on these adjustable-rate mortgages are not necessarily the best for borrowers, but they’re not bad either.
In recent months, mortgage rates have consistently risen, reaching highs of over six percent in June. Then, as the Federal Reserve’s latest meeting nears, rates were back down into the five percent range. However, interest rates are likely to increase again in July, and the next few months. High inflation, on the other hand, has been driving rates up. So, if rates rise now, you should be glad you’re in a position to buy a new home.
Interest rates on jumbo mortgages have plummeted
Jumbo mortgage rates have fallen to their lowest point since early 2012. As a result, more borrowers are receiving these loans than ever before. While interest rates for jumbo mortgages are still higher than the average 30-year fixed-rate mortgage, they are far below the median rate for conforming loans, which fall within the limits of government-sponsored mortgage giants. This has resulted in a huge increase in jumbo loan securitization, reaching nearly $48 billion in 2021, nearly double what it was the previous year and the highest level since 2007.
In early October, the 15-year average for jumbo mortgages fell below the 5% threshold. This represents a three-tenths point decrease from the rate two weeks earlier. Only two weeks earlier, the 15-year rates had hit their highest levels since 2008, when they were at 5.41%. In the same week, the 30-year average for jumbo mortgages fell 12 basis points, landing at 5.07%. These rates have been lower for nearly a decade.