Massachusetts Home Buyer Guide

Average U.S. mortgage interest rates declined to the lowest level of the year and the lowest level since May 2013, Freddie Mac reported April 14, 2016. 

The average rate for a 30-year, fixed-rate mortgage loan declined to 3.58 percent for the week ending April 14, 2016.

The average rate was 3.59 percent last week for the 30-year note, and interest rates averaged 3.67 percent during the same period last year. The average 30-year rate included an average 0.5 point. Attractive interest rates certainly are playing a role in the strong Boston area real estate market and around the country.

"Demand for Treasuries remained high this week, driving yields to their lowest point since February. In response, the 30-year mortgage rate fell 1 basis point to 3.58 percent," Freddie Mac chief economist Sean Becketti said. "This rate represents yet another low for 2016 and the lowest mark since May 2013."

The 15-year, fixed-rate mortgage interest rate averaged 2.86 percent, down from last week when it averaged 2.88 percent. The average 15-year rate included an average 0.5 point. A year ago this week, the 15-year mortgage averaged 2.94 percent.

The five-year, adjustable-rate mortgage loan interest rate increased slightly to an average 2.84 percent.

Homebuyers should understand that interest rates will vary depending on the type of home loan program. For example, a mortgage loan that does not require a borrower with less than a 20 percent down payment to pay monthly mortgage insurance likely will have a slightly higher mortgage interest rate compared to other loans.