Continued chaos in Washington D.C., some bleek economic news and the Federal Reserve's decision to continue purchasing mortgage-backed sercurities have resulted in rates dipping below mid August highs.
The 30-year, fixed rate mortgage loan averaged 4.22 percent this past week. It was 4.57 percent in the week that ended September 12, 2012, but a year ago rates stood at 3.36 percent, according to data from Freddie Mac.
The average rate on a one-year adjustable-rate mortgage loan was unchanged at 2.63 percent. The average rate on a five-year, adjustable-rate mortgage declined to 3.03 percent from 3.07 percent.
Interest rates are not the only consideration for first-time home buyers. Home buyers should consider closing costs and private mortgage insurance (PMI) when evaluating loan programs. Both Massachusetts and New Hampshire home buyers have several first-time home buyer program options.