The interest rate on a standard 30 year mortgage has stayed below the 5% mark. Are mortgage rates falling? Last week the rate fell again. It dropped to 4.8% down from the previous week of 4.91%. The lowest rate was at 4.17% (November 2010), and this was the lowest recorded rate in 40 year.
The 15 year rate followed the same pattern dropping to 4.02% from the previous 4.13%. The lowest
in had previously been was 3.57% back in November 2010; and that was the lowest since 1991.
It is a fantastic time to lock in rates or to purchase a new home if you need financing. Not only is
inventory high enough to keep prices down and give the buyer ample options but rates are still at
historically low levels.
To give you an idea you can calculate your mortgage payment for a $250,000.00 loan to be $1311.66 for principle and interest at 4.8%.
Keep in mind that financing is a complicated issue so it is always best to deal with a competent mortgage broker. Many factors play into the banks calculation of your qualifications; your credit, your income, your other financial obligations and your cash reserves and down payment are some of the items taken into consideration.
