But just a teensy one. The average on a 30-year fixed-rate mortgage is down to 4.34% from last week’s 4.41%. Still SUPER low and worth taking advantage of if you’re a buyer! Here’s the full story from UrbanTurf, along with a very handy chart showing the path that rates have taken over the past few years (please note the disclaimer at the bottom, which I subscribe to as well!):
Mortgage rates headed back down on Thursday from their position last week. Freddie Mac reported 4.34 percent with an average 0.7 point as the average on a 30-year fixed-rate mortgage, down from 4.41 percent. Last year at this time, long-term rates averaged 3.43 percent.
It was a week of economic news that did little to signal big changes to the economy, and the shift in the rates was a small one. Frank Nothaft, Freddie Mac’s vice president and chief economist, had this to say in a news release on the rates:
“Mortgage rates eased a bit following the decline in 10-year Treasury yields. Also, the economy added 192,000 jobs in March, which was below the market consensus forecast but followed an upward revision of 22,000 jobs in February. Meanwhile, the unemployment rate held steady at 6.7 percent.”
UrbanTurf is tracking the path of the rates in this chart:
The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.
Lenders are now offering the opportunity to put down as little as 3% when buying a home. The good news is, this time around they’re actually underwriting the loans properly (i.e. doing financial background checks) so as to avoid another subprime lending fiasco. Are you debating between taking out a low-downpayment loan or holding out til you can save up for a larger downpayment? There are lots of factors to consider, including your cash-on-hand needs, current mortgage and rental rates, and your long-term job outlook. This article walks you through the main pros and cons that you should consider when debating what path to take when it comes to financing your new home.
The lowdown on low down payments
MOLLY RILEY/REUTERS – The resurgence of low-down-payment financing may seem dangerous, but the loans are different this time
By Michele Lerner, Published: August 15
Mortgage down payments as low as 3 percent — and even 100 percent loans — are returning. That may be good news for buyers who haven’t accumulated a lot of savings.
But there are some trade-offs: Mortgage payments will be higher because more money is being borrowed and because private mortgage insurance is required for down payments that are less than 20 percent. With that in mind, buyers may want to consider renting for a longer time and saving more for a larger down payment to make sure they can truly afford a home…
Full article: http://www.washingtonpost.com/realestate/the-lowdown-on-low-down-payments/2013/08/15/3b47417e-fb83-11e2-8752-b41d7ed1f685_story.html
Mortgage rates appear to have taken an August vacay too. After a steady creep upward, they have leveled off – for now.
(Pablo Martinez Monsivais/Associated Press)
Following a run-up in the spring and early summer, mortgage rates seem to have leveled off for the time being, according to the latest data released by Freddie Mac…