Just in time for the spring buying season, mortgage rates have fallen to their lowest level in five months, according to a lender survey released this week. This marks the fourth straight week in which mortgage rates have dropped.The benchmark for conforming 30-year fixed rate mortgages fell to 4.88 percent, down from 4.95 percent last week, according to Bankrate's weekly survey of the 10 largest lenders. Similarly, 15-year fixed sank to 4.05 percent, down from 4.14 percent last week. Variable rate loans were also lower, with 5/1 ARMs slipping to 3.69 percent.
Bankrate attributes the dip to growing investor concern over unemployment and higher gasoline prices, both of which may cut into consumer spending. The uncertainty has investors moving toward "safe-haven" government bonds, which indirectly pushes mortgage rates lower.
The last time mortgage rates were above 6 percent was in Nov. 2008, according to Bankrate. At the current average 30-year mortgage rate of 4.88 percent, a $250,000 loan would cost $1,323.78 a month, not including private mortgage insurance or property tax.
For more insight on mortgages and refinancing see these AOL Real Estate guides:
- Mortgage Jargon in Simple Terms
-
How to Get a Low Mortgage Rate
- When to Refinance
- Four Ways to Benefit From a Cash-In Refinance
More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.
