Great news for home buyers. If you have been thinking of buying a new home; rates continue to be at record lows. Now may be the time to start considering getting your ducks in a row and getting into this hot market. Here is an article from Crissinda Ponder at Bankrate.com that I found interesting.
Mortgage rates fell this week as the Federal Reserve revealed more hints about its monetary policy plans. Meanwhile, markets were anticipating Friday’s jobs report.
The U.S. Bureau of Labor Statistics said that 215,000 were added in March. Health care, retail, and food and drinking establishments were among the sectors showing growth. The ADP Research Institute says 200,000 jobs were added in March.
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The movement of mortgage rates over the next week likely won’t be determined by the BLS jobs numbers, says Brett Sinnott, vice president of capital markets at CMG Financial in San Ramon, California.
What the Fed said
Federal Reserve Chair Janet Yellen made headlines recently after suggesting that the central bank may increase the federal funds rate more slowly than previously expected.
“Reflecting global economic and financial developments since December … the pace of rate increases is now expected to be somewhat slower,” Yellen said on March 29 in remarks to the Economic Club of New York.
The news prompted investors to purchase government bonds, which sent prices higher and yields lower. Mortgage rates are closely tied to the yields on long-term government bonds.
A look at this week’s rates
- The benchmark 30-year fixed-rate mortgage fell to 3.83% from 3.9%, according to Bankrate’s March 30 survey of large lenders. A year ago, the rate was 3.82%. 4 weeks ago, it was also 3.82%. The mortgages in this week’s survey had an average total of 0.17 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4%. This week’s rate is 0.17 percentage points lower than the 52-week average.
- The benchmark 15-year fixed-rate mortgage fell to 3.09% from 3.13%.
- The benchmark 30-year fixed-rate jumbo mortgage fell to 3.76% from 3.81%.
- The benchmark 5/1 adjustable-rate mortgage fell to 3.28% from 3.36%.
Weekly national mortgage survey
Results of Bankrate.com’s March 30, 2016, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
|30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||3.83%||3.09%||3.28%|
|Change from last week:||-0.07||-0.04||-0.08|
|Change from last week:||-$6.60||-$3.18||-$7.28|