Meanwhile, the average 15-year fixed mortgage retreated to 3.34 percent, while the jumbo 30-year fixed mortgage slid to 4.55 percent. The average 5-year and 7-year adjustable mortgage rates dropped to 3.02 percent and 3.24 percent, respectively. All of these are record lows.
This most recent drop in rates was just announced by Ben Bernanke and the Federal Reserve, along with a pledge to keep short-term interest rates on hold until late 2014. However, given the continued volatility in the market, along with the unpredictable nature of a presidential election year, if you’re considering a home purchase or a refinance, act quickly to take full advantage of low rates.
Bankrate points out just how significant these historic rates really are. Think about this: The last time mortgage rates were above 6 percent was November 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now at 4.12 percent, the monthly payment for the same size loan would be $968.72, a difference of $273 per month for anyone refinancing now.
Here are other important specifics from Bankrate's national weekly mortgage survey:
• 30-year fixed: 4.12 percent - down from 4.25 percent last week (avg. points: 0.29)
• 15-year fixed: 3.34 percent - down from 3.45 percent last week (avg. points: 0.30)
• 5/1 ARM: 3.02 percent - down from 3.09 percent last week (avg. points: 0.31)
If you’d like to take advantage of these incredible market conditions, remember to do the following before embarking on your home search:
• Make sure your finances are in order and your credit is in good shape.
• Research homes in neighborhoods you’re interested in online first to help narrow your selection. This will save time when viewing homes in person, allowing you to place a bid faster.
• If you need to sell your current home first, contact a real estate professional right away to find out what repairs/improvements you might need to make before putting your home on the market.
As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.
A member of the Top 5 in Real Estate Network, Jim Soda of The Soda Group is a consistent top producer in the Sarasota area. He can be reached at Keller Williams Realty Sarasota-Lakewood Ranch, (941) 961-5857, (941) 809-7759 or firstname.lastname@example.org.