For the fourth time in 5 weeks, rates for the 30-year fixed rate mortgage rate have dropped, lowering the benchmark rate to its cheapest point in six months. Today’s home buyers can afford more home; and, today’s existing homeowners have new opportunities to refinance.
Some mortgage lenders are quoting rates in the 3s.
30-Year Fixed Falls To 4.21% Nationwide
According to Freddie Mac’s weekly survey of more than 100 mortgage lenders, the average 30-year conventional fixed rate mortgage fell 0.08 percentage points to 4.21% last week, marking the largest one-week drop in rates in more than two months.
This is the lowest mortgage rates have been since November of last year. Rates are down by nearly one-half percent since January 1.
In order to lock a 4.21% 30-year fixed rate mortgage rate, banks charged applicants an average 0.6 discount points at closing. One discount point carries a cost of one percent of your loan size such that 0.6 discount points costs $600 per $100,000 borrowed.
The Freddie Mac survey is just an average, however.
With additional discount points paid at closing, some banks now offer their customers mortgage rates below the benchmark rate of four percent. To lock a mortgage rate in the 3s, be sure to ask your lender for your options.
The 15-year fixed rate mortgage rate dropped big last week, too.
On average, 15-year conventional fixed-rate mortgage rates dropped 0.06 percentage points nationwide last week, falling to 3.32%. This marks a two-month low for the 15-year loan.
FHA mortgage rates and VA mortgage rates fell last week, too. At mortgage rates today, it’s easier for existing U.S. homeowners to qualify for the FHA Streamline Refinance and the VA Streamline Refinance as compared to several weeks ago.
More homeowners become eligible to refinance as mortgage rates fall.