Point of Interest
Massachusetts consistently posts lower-than-average mortgage and refinance rates. While the cost of living is among the highest in the country, the lower mortgage rates in Massachusetts make home ownership dreams a reality for many.
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|Term||Rate||Rate Last Week|
|30-year fixed jumbo||3.86%||3.87%|
Current mortgage rates Massachusetts residents enjoy are the lowest in the Northeast U.S., but the rates are also trending as the lowest in the entire eastern half of the country. Mortgage rates in Massachusetts are also trending lower than the national average. Does this make it an ideal time to purchase a home in the Bay State? Understanding the mortgage rates Massachusetts homeowners pay can help you make the most of your finances and find the home of your dreams.
Getting a mortgage in Massachusetts
The lower-than-average mortgage rates in Massachusetts may be an enticing incentive to purchase, but the interest rate is only half the story. The state might be known for its world-class education and thriving cities, but it’s also a more expensive place to live. The median home value for Massachusetts is quite higher than the national average of $204,900. With the state also having higher property taxes, it will cost you more to live in Massachusetts versus other areas of the country.
While housing costs may be higher in Massachusetts, the homeownership rate is still steady, only slightly below the national average of 63.8%. The fact the mortgage rates tend to be lower in Massachusetts than other states in the region may be a contributing factor to this homeownership rate.
- Median home price: $366,800
- Average 30-year fixed rate: 3.61%
- Median monthly mortgage cost: $2,165
- Homeownership rate: 62.3%
Massachusetts mortgage rate trends
Like the rest of the country, mortgage rate trends in Massachusetts have experienced the same periods of volatility. The last five years have realized many fluctuations for those looking to secure a mortgage or refinance. The coronavirus pandemic has undoubtedly had an impact on the last two months, and now it appears the homebuyer could benefit from lower mortgage interest rates.
Massachusetts — like all other housing markets recently — has experienced increases and decreases in mortgage rates, particularly with the refinance rates in Massachusetts, but overall the rates continue to fall. The week of May 25 saw rates drop from the week before, solidifying the downward trend for mortgage rates in Massachusetts.
Massachusetts current mortgage rates
For May 2020, the average 30-year fixed current mortgage rate in Massachusetts for a 30-year fixed loan is 3.61%. The average refinance rate in Massachusetts is slightly higher, at 3.64%. The average 15-year fixed mortgage rate comes in at 3.13%. If you’re looking for an adjustable-rate mortgage (ARM) option, the 5/1 ARM rate is 3.31%. Lastly, if you’re considering a 30-year fixed jumbo loan (a loan exceeding the current federal loan limit), the current rate is 3.86%.
Overall, the current mortgage and refinances rates Massachusetts homeowners experience are trending down. When you compare the prices versus the week prior, all have decreased. This follows a similar pattern with national mortgage rates, where rates have fallen over the last two months.
Most and least expensive places to live in Massachusetts
Massachusetts may be one of the smallest states in the country in land size, but the housing prices are low in some areas. Boston consistently ranks in the top 10 most expensive cities to live in the U.S. Within the state, you’ll find varying degrees of housing prices, but most are above the national average. From Nantucket to Norfolk, here are the five most expensive areas and five least expensive areas to purchase in Massachusetts:
5 most expensive
- Newton — Newton takes the top spot, with the median home value averaging $982,600.
- Cambridge — The college town comes in at No. 2 with a median home value of $726,000.
- Norfolk — Norfolk has a median home value of $559,908, making it a more expensive city to call home.
- Boston — The Boston proper area ranks third with a median home value of $554,600.
- Lynn — This city just north of Boston has an average home value of $306,400.
5 least expensive
- Brockton — The quaint New England city has a median home value of $256,500.
- Lowel — Located in the northern part of the state, Lowell has a median home value of $256,000.
- New Bedford — About 50 miles south of Boston is New Bedford, with a median home value of $223,400.
- Worcester — Worcester is more affordable with a median home value of $214,100.
- Springfield — Springfield is one of the least expensive places to live with a median home value of $142,100, which is below the national average.
Massachusetts mortgage resources and intricacies
As you begin your homebuying journey in Massachusetts, there are several resources to help you navigate through the process. First, you’ll need a mortgage calculator to assist you as you keep track of the ever-changing mortgage rates. A competitive interest rate is one way to save on your mortgage, but there are other steps you can take to save even further.
When it comes to purchasing or refinancing, specifically in Massachusetts, you can find additional resources through MassHousing. MassHousing is a public agency dedicated to finding affordable housing solutions for those currently living or planning a move to the Commonwealth. If you’re a first-time homebuyer in Massachusetts, you might find the Massachusetts Housing Partnership a useful resource.
If you find yourself facing foreclosure, the Massachusetts Division of Banks is another resource to explore. The Division of Banks has programs to help residents who are amid foreclosure and facilitates programs between lenders and borrowers to help avoid foreclosure.
The final word
With current mortgage rates in Massachusetts trending lower each week and below the national average, now may be a great time to lock the rate. Whether your goal is to secure the best refinance rates in Massachusetts or mortgage rates in Massachusetts, there’s never been a better time to choose a mortgage or refinance in the Commonwealth.