A year ago at this time, the Federal Reserve had announced a tapering of its monthly mortgage bond-buying program, which had spurred market anticipation that the Fed would be rising its mortgage rates soon. The 30-year fixed-rate mortgage had then jumped to a 4.46 percent average. This week, rates averaged 4.14 percent.
This continues to be good news for home buyers as lower mortgage rates greatly affect home owner affordability. For example, in 2008 mortgage rates were averaging 6.03% making the monthly mortgage payment for a four bedroom, three bath home $1,503.70. At the current mortgage rate, the monthly mortgage payment would be $1,347.13, a significantly monthly savings of $156.57.
Here’s an overview of the national averages for mortgage:
- 30-year fixed-rate mortgages: averaged 4.14 percent, with an average 0.5 point, dropping from last week’s 4.17 percent average. Last year at this time, 30-year rates averaged 4.46 percent.
- 15-year fixed-rate mortgages: averaged 3.22 percent, with an average 0.5 point, dropping from last week’s 3.30 percent average. A year ago, 15-year rates averaged 3.50 percent.
- 1-year ARMs: averaged 2.40 percent, with an average 0.4 point, dropping from last week’s 2.41 percent average. Last year at this time, 1-year ARMs averaged 2.66 percent.
For more information on mortgage rates and home buyer affordability, please contact The McKinley Group at 480-355-8645 or visit us at locatearizonahomes.com
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