We've all been antipicating the rise of interest rates, but according to recent statistics, mortgage rates are still falling and have reached a 5 month low! Now is the time to secure a fixed rate, 15 or 30 year mortgage, at an all time historically low interest rate. While this data is national, it holds true to the Pensacola, FL real estate market!
Mortgage Rates Fall to 5-Month Low
May 6, 2011 Mortgage rates dropped for the fourth consecutive week, with the benchmark conforming 30-year fixed mortgage rate falling to 4.88%, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.35 discount and origination points.
The average 15-year fixed mortgage pulled back to 4.05%, and the larger jumbo 30-year fixed rate retreated to 5.36%.
Adjustable-rate mortgages were also lower, with the average 5-year ARM sinking to 3.56% and the 7-year ARM dropping to 3.83%.
A weak reading on first quarter economic growth, an uptick in filings for unemployment, and worries that higher gasoline prices have started to take a bite out of consumer spending, had investors moving back into what is known as the safe-haven trade. When investors get nervous they rotate into safe-haven government bonds, to which mortgage rates are closely related. The downswing in government bond yields had a corresponding benefit on mortgage rates.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.88%, the monthly payment for the same size loan would be $1,059.02, a difference of $182 per month for anyone refinancing now.
Source: Bankrate.com
Read more:
http://www.houselogic.com/news/articles/mortgage-rates-fall-5-month-low/#ixzz1LxsAt7yl
Nicole St. Aubin, Realtor
Realty Masters of FL
4400 Bayou Blvd. #58B, Pensacola, FL 32503
(850) 473 3983 Office
(850) 473 3975 fax/ (850) 324-1615 cell
