Today's Mortgage Rate Still 4.625 Percent - 30-years fixed at par.
Today’s 30 year fixed mortgage rates have dipped below 5 percent, everybody knows that now. Did you know that 30 year fixed mortgages are at 4.625 percent at par at most wholesale mortgage lenders? It’s a fact.
30-Year Fixed-Rate Mortgage at Par – What’s Par?
Par is the rate of which a mortgage can be obtained without paying additional fees, knows as buy down points or discount points. Typically a mortgage broker or bank is willing to fund a mortgage at “par” at average closing costs. If a lender funds a loan at a rate above par they collect what’s called a yield spread. Yield spreads have been controversial since the sub-prime meltdown as they motivate brokers and bank’s to give out higher rates to make more money.
Today’s Mortgage Rates at Par by Product
FreeRateUpdate.com research of wholesale mortgage lenders mortgage rates today shows 30 year fixed mortgages available at a par rate of 4.625 percent. Mortgage rates have been this low since Friday afternoon when the benchmark 10 year treasury yield took a big dip, to a 4 month low, and soon after so did mortgage rates. 15 year fixed mortgage ratesare down from last week and as low as 4.125 percent at par. The 5/1 ARM, not recommended for anyone staying in a home over 5 years, is at an unbelievable 3.625 percent. How would you like to pay just 3.625 percent for 5 years? Holy moly.
Simplified -
30-year fixed-rate: 4.625 percent
15-year fixed-rate: 4.125 percent
5/1 adjustable rate mortgage: 3.625 percent
Can Mortgage Rates Go Any Lower?
It’s definitely a possibility. As home prices stabilize the prices of residential mortgage backed securities increase and in turn lower mortgage rates which move opposite. As investors flocked to bonds weary of the stock market bond prices increase in turn dropping the benchmark yield and mortgage rates which move opposite. Honestly, it’s nearly impossible to predict mortgage rates for the long term. If you want to stick with the basics, the past 2 holiday seasons mortgage rates have dipped significantly. Maybe it’s the markets way of putting on a holiday sale?