Mortgage Rates Sink to 5-Month Low

mortgage ratesJust 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:

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Latoya Rutledge

Seller financing can be a great way to get a house sold without slashing the price. By recognizing the millions of people who can't get traditional financing as potential buyers, resourceful property sellers (and their real estate agents) can minimize their time investment in getting a property sold. Even better, sellers who offer financing can usually get a higher asking price for their property, even in the slowest markets. Clearly this is a win-win situation.

May 06 2011 at 2:08 PM Report abuse rate up rate down Reply
1 reply to Latoya Rutledge's comment

I carried finacning on e time and it was a disater. Ended up not getting paid after 1.5 years, she decleared bankrupcy, house torn apart. Never again would I ever consider it except with a close family member (I carried a loan for my daughter and all went fine). If a bank will not lend them the money, I sure in the hell would not either.

May 06 2011 at 10:29 PM Report abuse rate up rate down Reply