Massachusetts home buyers and home buyers around the United States still have the opportunity to take advantage of historically low mortgage interest rates. In fact, interest rates are a bit lower than they were a few weeks ago.
The average rate for a 30-year, fixed rate mortgage loan in the U.S. declined .07 points last week to 3.70 percent, the lowest level in more than a month, the Mortgage Bankers Association (MBA) reported March 6, 2013.
The average mortgage loan interest rate for 30-year, fixed-rate mortgages, with conforming loan balances ($417,500 or less), declined to 3.70 percent from 3.77 percent, with points decreasing to 0.39 from 0.48 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
For 30-year, fixed-rate mortgages with jumbo loan balances (greater than $417,500), the average mortgage loan interest rate decreased to 3.80 percent from 3.93 percent, with points remaining at 0.37 (including the origination fee) for 80 percent LTV loans.
The average interest rate for 30-year, fixed-rate home loans backed by the Federal Housing Administration (FHA) decreased to 3.47 percent from 3.54 percent, with points decreasing to 0.33 from 0.41 (including the origination fee) for 80 percent LTV loans. Most FHA loans have a higher loan-to-value ratio because FHA allows for a down payment as low as 3.5 percent.
The average mortgage loan interest rate for 15-year, fixed-rate mortgages in the U.S. decreased to 2.96 percent from 3.03 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTV loans.
Applications for home loans increased 14.8 percent, with refinance loans increasing 14.8 percent and loans for home purchases increasing 15 percent.
In order to gather the interest rate and loan application data, the MBA conducts a weekly survey that includes more than 75 percent of U.S. retail residential mortgage applications.