The mortgage market saw a decrease in 30-year fixed rates this week, with the 30-year fixed conventional rate dropping from 3.625% to 3.5%. This makes the cost of financing more favorable for those looking to buy and refinance a property. The 15-year fixed rate also decreased slightly, from 2.875% to 2.75%.
For those looking to refinance, the 5/1 adjustable rate mortgage saw a slight decrease, dropping from 2.25% to 2.125%. The adjustable-rate mortgages are popular among those who seek a lower initial rate but risk fluctuating monthly payments should the interest rate rise in the future.
Interest rates on FHA loans were also down this week. The FHA loan rate fell from 3.75% to 3.625%, making it more attractive to those who typically opt for a government-backed loan due to a lower down payment and higher qualification criteria. The VA loan rate dropped as well, from 3.5% to 3.375%.
Finally, jumbo loans also experienced lower rates this week, with the conventional jumbo rate decreasing from 4.25% to 4%. Jumbo loans are beneficial to high-income earners, as they allow borrowers to purchase a more expensive property than a traditional loan would cover.
Overall, this week’s mortgage rate tracker indicates that the market is in favor of those looking to buy or refinance a property. Interest rates on traditional and government-backed loans have all dropped, resulting in lower monthly payments and increased purchasing power for borrowers. Those with higher incomes can benefit from this trend due to jumbo loan rates being lower now than ever before.
It remains to be seen how long this interest rate trend will last, and borrowers should do their research to determine whether or not they’ll be able to secure a low rate before the trend changes. Additionally, there are many other factors to consider when buying a home, and prospective buyers should take this into account before taking out a loan.
This analysis of the Vantage Mortgage Group Weekly Rate Tracker (09/16/2015) has shown that mortgage rates have decreased this week across the board. This is favorable news for those seeking to purchase or refinance a property, as lower rates mean lower monthly payments and increased purchasing power. However, it is important to consider the other factors associated with buying a home before taking out a loan, and to make sure that the current market trends are suitable for one’s individual needs.
This article was contributed on Aug 20, 2023