Mortgage rates hit record lows again in first October survey
After creeping up slightly at the end of September, rates on the four most popular types of home loans fell this week, according to Interest.com’s most recent survey of major lenders.
Rates for 30-year, fixed-rate loans and 30-year, fixed-rate jumbo loans -- given for mortgages that exceed $417,000 to $625,000, depending on the city -- both reached new record lows.
The cost of 15-year, fixed-rate home loans and adjustable-rate mortgages also declined.
Rates have dropped fairly steadily since spring, and they should remain near record lows for some time, giving buyers a major boost -- especially if you’ve got a solid down payment and steady income.
The best deals, like the one being offered in Florida by Quick Quote Mortgage, are charging just 3.75% with no points.
We also found a nationwide deal from Flagstar Direct that costs 3.884%, still well below the average for 30-year loans.
Our Oct. 5 survey found the average interest rate for a:
30-year, fixed-rate loan dropped to a new low of 4.21% from 4.30% the previous week. This type of loan cost 4.45% about this time last year.
15-year, fixed-rate loan decreased slightly from 3.47% last week to 3.46% this week. It cost 3.87% in early October 2010.
30-year, fixed-rate jumbo loan fell to 4.82% -- a record low -- from 4.87% last week. Last year, jumbo loans cost 5.14%.
5-year, adjustable-rate loan -- home loans on which the initial interest rate remains fixed for the first five years and then changes once a year after that -- declined to 3.11% from 3.13%. The average rate at this time last year was 3.64%.
Our database of mortgage rates can help you find the best deals in your area, including many that are less costly than the national averages.
You can use our calculator to determine the monthly payments for the exact amount you want to borrow with this or any home loan.
It will also provide a month-by-month amortization schedule that shows how much you've reduced your debt and how much you still owe.