Jumbo Mortgage Rates Fall To Record Lows

By
Real Estate Broker/Owner with Cornerstone Properties International
The jumbo 30-year fixed mortgage rate fell to a new historic low of 4.68 percent, according to Bankrate.com’s weekly national research. The average jumbo 30-year fixed mortgage loan has an average of 0.4 discount and origination points.

According to Bankrate’s
survey, the average conforming 30-year fixed mortgage inched lower to 4.24 percent while the 15-year fixed mortgage held stable at 3.48 percent. Adjustable rate mortgages were generally lower, with the (blank) 5-year ARM dropping to 3.18 percent and the 10-year ARM inching down to 3.8 percent.

Mortgage rates are very low, but based on the ultra-low levels of benchmark interest rates such as 10-year Treasury notes, mortgage rates could be even lower.

Since August, the European financial crisis has forced the spread between risk-free U.S. government bonds and those of various other bonds, such as mortgage-backed bonds, to the highest levels since the early spring of 2009. At that time, economic tensions were at a fever pitch, especially surrounding the well being of the U.S. banking system. This time, it’s Europe’s banking system in the crosshairs, but the result is much the same - a higher-than-typical cost of borrowing when compared to the rock-bottom government rates.

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.
 
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Rainmaker
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I hope that these low mortgage rates and more affordable housing will equate to more home sales.  I hope that the european situation is resolved sooner than later.

Dec 08, 2011 03:06 PM #1
Rainmaker
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Kerry Lucasse
eXp Realty - Nest Atlanta Team - Atlanta, GA
Your Nest Atlanta Real Estate Consultant

Great rates for Jumbos!  I'll have to share this with one of my clients.

Also, 3.8% for the 10 year arm is impressive!

Dec 10, 2011 11:19 AM #2
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Steve Eckhardt

Tampa, St Pete, and Sarasota Luxury Broker
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