Mortgage rates recently plunged to their lowest level since February 2015, unlocking more savings for home buyers and home owners who are refinancing. If you have been considering buying a home- 2016 could be the best year to make your move!
Currently interest rates for the popular 30-year fixed rate mortgage is still even lower than it was this time last spring. Mortgage rates are largely unchanged and remaining near their low mark for 2016 at the start of the spring homebuying season, according to the recently released Freddie Mac Primary Mortgage Market Survey®.
“As a result, the 30-year mortgage rate was mostly flat, up only 1 basis point to 3.59 percent. The release of March's existing-home sales report, which shows monthly growth at 5.1 percent, suggests homebuyers are taking advantage of low mortgage rates as the spring homebuying season gets underway," Sean Becketti, chief economist, Freddie Mac.
Freddie Mac reports the following national averages with mortgage rates for the week ending April 7:
- 30-year fixed-rate mortgages: averaged 3.59 percent, with an average 0.5 point, dropping from last week's 3.71 percent average. Last year at this time, 30-year rates averaged 3.66 percent.
- 15-year fixed-rate mortgages: averaged 2.88 percent, with an average 0.4 point, falling from last week's 2.98 percent average. A year ago, 15-year rates averaged 2.93 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 2.82 percent, with an average 0.5 point, dropping from last week's 2.90 percent average. A year ago, 5-year ARMs averaged 2.83 percent.
Results show the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week with an average 0.5 point, down from last week when it averaged 2.84 percent. A year ago, the 5-year ARM averaged 2.84 percent.
Many New home buyers are most concerned with interests rates and the amount of a required downpayment. This is a common concern among prospective buyers who are often told they need to raise at least 20 percent of their home price as a downpayment.
Surprisingly, however, the median downpayment made by first-time buyers is actually only six percent, according to a National Association of REALTORS® (NAR) survey of homeowners published last November.
Many prospective borrowers don't fully realize the options available to them -- especially those related to low-downpayment loans.