Good news for home buyers as homes for the time being, continue to be, in many cases, more affordable than renting. According to the latestÂ BankRate weeklyÂ survey, mortgage rates plunged to aÂ 3-Month low as they fell back below the 5% range.
According to RISMEDIA, March 18, 2011, "Mortgage rates posted a sharp decline, with the benchmark conforming 30-year fixed mortgage rate falling to 4.91%, according to Bankrate.comâ€™s weekly national survey. The average 30-year fixed mortgage has an average of 0.38 discount and origination points.
The average 15-year fixed mortgage dropped to 4.12%, and the larger jumbo 30-year fixed rate retreated to 5.46%. Adjustable rate mortgages were mostly lower also, with the average 5-year ARM sinking to 3.74% and the 7-year ARM pulling back to 4.10%.
Mortgage rates fell sharply, pulling back below the 5% mark for the first time in nearly two months. While mortgage rates had been lower in three of the past four weeks owing to concerns about Middle East tensions and the potentially negative economic consequences of higher oil prices, it was the unfolding tragedy in Japan that produced this weekâ€™s movement. Concerns among investors about a potential nuclear meltdown and worries about slower global growth stemming from the devastating earthquake and tsunami in Japan, had investors piling into safe haven U.S. Treasuries, helping to drive mortgage rates lower. Mortgage rates are closely related to yields on long-term government bonds.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.91%, the monthly payment for the same size loan would be $1,062.67, a difference of $179 per month for anyone refinancing now.
30-year fixed: 4.91% â€“ down from 5.04% last week (avg. points: 0.38)
15-year fixed: 4.12% â€“ down from 4.32% last week (avg. points: 0.38)
5/1 ARM: 3.74% â€“ down from 3.88% last week (avg. points: 0.39)
Bankrateâ€™s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets."
With the economy starting to show signs of improving, mortgage rates low for the time being and home prices still affordable, this is a sign for many home buyers to consider making their move to purchase now.
Jeff Masich, Realtor
Arizona Homes and Land