MORTGAGE NEWS

May be time to lock in: Mortgage market exhales in relief, and rates drop

Homebuyers and refinancers have received a belated gift from the Fed: Mortgage rates have fallen because the Federal Reserve reassured bond investors that it won’t raise short-term interest rates aggressively.

This decline in mortgage interest rates might not last, because in the long run, rates are trending upward. If you’re ready to get a mortgage, this is a good time to do it.

Mortgage rates this week

The benchmark 30-year fixed-rate mortgage dropped this week to an average 4.29 percent from 4.44 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 3.9 percent. Four weeks ago, the rate was 4.29 percent.

The mortgages in this week’s survey had an average total of 0.24 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 3.88 percent. This week’s rate is 0.41 percentage points higher than the 52-week average.

The 15-year fixed-rate mortgage fell to an average 3.49 percent, from 3.64 percent. The 5/1 adjustable-rate mortgage slid to 3.44 percent, on average, from 3.6 percent. The 30-year fixed-rate jumbo mortgage fell to an average 4.22 percent, from 4.43 percent.