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Growing concerns about weak economic growth and Fed’s indication of delaying rate hikes, plummeted the mortgage rates to the lowest levels in 16 months.

Mortgage Banker’s Association (MBA) reported the decline in rates across the board in its latest weekly mortgage applications survey released today. See the results below.

The rates this morning are actually much lower than below quoted rates. For most well qualified borrowers with 10%-20% equity in the house, 30 Year Fixed mortgage rates on Conforming loan balances is under 4%.

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The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.20 percent, the lowest since June 2013,  from 4.30 percent, with points decreasing to 0.17 from 0.19.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.14 percent, the lowest since May 2013, from 4.21 percent, with points decreasing to 0.10 from 0.29 .

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.90 percent, the lowest since June 2013, from 4.00 percent, with points decreasing to 0.08 from 0.15.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.41 percent, the lowest since July 2014, from 3.48 percent, with points decreasing to 0.28 from 0.32.

The average contract interest rate for 5/1 ARMs decreased to 3.05 percent,  from 3.20 percent, with points increasing to 0.38 from 0.37.

 As I am typing this, the mortgage backed securities have already given up about 70 basis points in gains. That means the rates are already higher than it was in the morning.

When you see the rates hitting this low, time is of essence. Moving quickly will save you a lot of money on interest cost.

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