Mortgage loan rates skirt historic lows; Boston rates low, too
Aug 2011 11

Mortgage loan rates dropped again, this past week, skirting the lowest rate, ever.

The average 30-year, fixed mortgage rate decreased to 4.32%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.32 percent with an average 0.7 point for the week ending August 11, down from 4.39 percent, last week. Last year at this time, the 30-year FRM averaged 4.44 percent, so rates are lower.

A $400,000, 30-year, fixed-rate mortgage at 4.32 percent would run you approximately $1984 per month in loan repayments. This is down from $2,000, last week, $16 per month less, and $12 less per month compared to last year, when it would have cost you $2,012 per month.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Renewed market concerns about the European debt markets led investors to shift funds into U.S. Treasuries, pushing long-term yields lower. Further, in its August 9th Federal Open Market Committee statement, the Federal Reserve noted that economic growth so far this year had been considerably slower than it expected and that overall labor market conditions had deteriorated in recent months, leading the Committee to conclude that an exceptionally low federal funds rate should be maintained at least through mid-2013. These developments helped to ease mortgage rates lower this week.

“Lower mortgage rates will help to maintain the high degree of home-buyer affordability in the market. The National Association of Realtors┬« reported that its affordability index over the past three quarters has indicated the highest affordability since the inception of the index in 1970.”

If you’re considering a home purchase this fall, now is the time to speak with a mortgage broker.

1 Comment

  1. Donald says:

    How can I own a house when I can’t pay off my college loans!

    Go Patriots! Go Boston! Go Beantown!

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