Interest rates for 30-year fixed, 15-year fixed, and five-year adjustable rate mortgage (ARM) loans have decreased this week, according to a weekly study by Bankrate.com.
Rates had increased for the past four weeks for the three mortgage types but are now down to monthly lows. Thirty-year fixed mortgages are down to 3.8%, compared to 3.91% last week. The rate for 15-year fixed mortgages is down .09% from last week, and now sits at 3.03%. Five-year ARMs are down .1% to 2.8%. For a $165,000 loan, the average borrower would save $8.78 per month under this week’s rates rather than last week’s.
Buyers who purchased loans when rates were above 6% in November 2008 are encouraged to refinance. Buyers who got a 30-year fixed rate $200,000 loan at the November 2008 rate of 6.33% pay $1,241.86 per month. At today’s 3.8% rate, monthly payments would decrease more than $300 dollars, to $931.91.
Bankrate.com’s weekly study is conducted by surveying the top 10 banks and thrifts in the top 10 markets.