In the first week of February, 30-year mortgage rates fell for all mortgage loan types including FHA loans, USDA loans, and VA loans; and, conventional loans backed by Fannie Mae and Freddie Mac.
Interest rates are within striking distance of the all-time bests, set in May 2013.
According to Freddie Mac's Primary Mortgage Market Survey (PMMS), the average 30-year fixed-rate mortgage rate fell 7 basis points (0.07%) this week to reach 3.59% nationwide. The rate is available to borrowers paying 0.7 discount points at closing plus a full set of closing costs.
The rate drop marks the fourth week out of five through which mortgage rates have dropped this year.
30-year mortgage rates are now close to 100 basis points (1.00%) percent below where they were at the start of last year; and pricing appears to have found a new range in the 3s.
15-year mortgage rates fell last week, too, falling six basis points (0.06%) to reach 2.92% on average, nationwide.
The Freddie Mac rates are based on a weekly survey of approximately 125 U.S. banks.
The survey asks banks to submit to Freddie Mac their "going rate" for a prime mortgage borrower where "prime borrower" is defined as one with a credit score of 740 or higher; with a purchase downpayment of twenty percent or more; with a debt-to-income ratio which meets mortgage guidelines; and, with ample reserves to support a mortgage approval.
Loans for prime borrowers are loans made against single-family residences including detached homes, certain town homes and attached properties; and, condos which meet minimum eligibility standards.
The Freddie Mac survey does not reflect FHA mortgage rates or VA mortgage rates, nor does it show rates the for no-money-down USDA loan. Freddie Mac's figures are for conventional loans only.
As compared to the start of last year, homeowners now pay $54 less per month for every $100,000 borrowed -- a savings of 10.6 percent.
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