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Mortgage Rates Take a Dip: What It Means for Homebuyers

 5-MINUTE READ  March 25, 2024

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This is an exciting update for those looking to buy a home! According to Bankrate's newest info, mortgage rates for all types of loans have decreased compared to last week. So, whether you're considering a 30-year fixed, 15-year fixed, 5/1 ARMs, or jumbo loans, you'll see better rates available.

Here's a breakdown of the latest rates:

The 30-year Fixed Mortgage Rate dropped by 0.18%:

Today's average rate for a 30-year fixed mortgage is 6.84%, which is 0.18% lower than last week. A month ago, it was slightly higher at 7.25%. At this rate, borrowers would pay $654.59 in principal and interest for every $100,000 borrowed, which is $12.06 less than last week.

Benefits of a 30-year mortgage include lower monthly payments, stability with fixed payments, increased buying ability, and financial flexibility.

The 15-year Fixed Mortgage Rate decreased by 0.14%:

The average rate for a 15-year fixed mortgage is now 6.42%, which is 0.14% lower than last week. With this term, your monthly payment for every $100,000 borrowed would be around $867. While this may put more strain on your monthly budget compared to a 30-year mortgage, choosing a 15-year term can save you thousands in interest payments overall and help you build equity faster.

The 5/1 ARM Rate dropped by 0.11%:

If you're thinking about adjustable-rate mortgages (ARMs), the average rate for a 5/1 ARM is now 6.35%, which is 0.11% lower than last week. ARMs have interest rates that can change, so they're good if you plan to refinance or sell before the first or second adjustment. Your initial payments might be lower, but they could increase significantly later.

Jumbo Mortgage Rate decreased by 0.12%:

The average rate for jumbo mortgages is now 6.94%, which is 0.12% lower than last week. Borrowers can expect to pay around $661.28 per month in principal and interest for every $100,000 borrowed, which is $8.06 less than last week.

Refinance Rates:

Refinance rates have dropped too, with the average 30-year fixed-refinance rate decreasing by 0.20% to 6.84%. This means a monthly payment of $654.59 for every $100,000 borrowed, which is $13.40 less than last week.

Predicting Future Rates:

While the Federal Reserve likely won't lower rates in the first half of the year, there may be changes in the second half based on factors like inflation and job market conditions.

What Does This Mean for Homebuyers?

If you're looking to get a mortgage, it's smart to lock in rates when they're good. Currently, it's unlikely that rates will return to their lowest levels in the near future. So, it's important to check out different loan offers to get the best deal. Don't hesitate to look at different lenders to save money over the life of your mortgage.

Mark Hamrick, a top economist at Bankrate, says it's crucial to put effort into finding the best mortgage deal. He says, "You can save a lot by taking the time to find the best rate or lowest cost on a mortgage. Don't settle for the easiest option."

In summaryEven though mortgage rates change all the time, keeping yourself informed and taking action can help you get the best deal on your mortgage. 

Be sure to regularly check for the best suitable interest rates. Let Loan Factory assist you on your journey to owning your dream home.



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