Conventional fixed rate mortgages touched a new low last Friday. The 30-year fixed mortgage rate available to qualified consumers dropped to 4.375%, down from 4.5%. The 15-year fixed rate also declined, from 4% down to 3.875%. It's worth noting mortgage rates have never been this low.
The decline stemmed from a big increase in mortgage backed securities (MBS) prices on Friday. MBS prices which drive mortgage rates in the opposite direction gained dramatically on a poor jobs number and additional European debt concerns. FHA mortgages continue to closely mirror those of their conventional counter parts. Jumbo mortgage rates are also down. Today's 30-year fixed jumbo loan rate is 5.375%. These rates are available to well qualified consumers paying a standard .075 point loan origination fee.
Mortgage Rates - available to qualified consumers paying a standard .075 point origination.
30-yr fixed-rate - 4.375%
15-yr fixed-rate - 4.000%
/1 ARM rate - 3.500%
FHA 30-yr fixed-rate - 4.375%
FHA 15-yr fixed-rate - 3.875%
FHA 5/1 ARM rate - 3.500%
VA 30-yr fixed-rate - 4.625%
Jumbo 30-yr fixed-rate - 5.375%
Jumbo Conforming 30-yr fixed-rate - 4.625%
These rates coupled with Real Estate prices having declined from 15% to 40% depending upon where you live creates buying opportunities for first time home buyers or those wishing to move up to a more expensive home.