::Mortgage interest rates continue to fall::
Loan type
+/- Rate
30 Yr Fixed 4.49%
15 Yr Fixed 3.92%
30 Yr Fixed Jumbo 5.33%
15 Yr Fixed Jumbo 4.84%
Loans are the cheapest they've been in decades, and even rates on jumbo loans are dropping.
Mortgage interest rates dipped again this week to their lowest level in more than 50 years, and even upper-bracket borrowers are getting better rates than they've seen in years.
The average 30-year fixed-rate mortgage fell to 4.44 percent, down from 5.29 percent last year at this time, according to a weekly survey released Thursday by Freddie Mac. The average 15-year mortgage was at 3.92 percent, down from 4.68 percent last year.
There's been particularly good news for upper-bracket buyers and borrowers in recent weeks, as well, as getting a jumbo mortgage has gotten slightly cheaper and easier.
And that seems to be showing up in the market. Pending sales of upper-bracket houses rose in July, making the high end the only price category to show an increase, according to the Minneapolis Area Association of Realtors.
Data from bankrate.com puts the average 30-year fixed rate mortgage at 4.57 percent, while the average 30-year jumbo mortgage is at a record low 5.27 percent. That's down .07 percent from the previous week.
Loans above $417,000 are considered jumbo in Minnesota, and in recent weeks the spread between rates on jumbo loans and smaller ones has narrowed.
Randy Reichert, area manager in the private mortgage banking division at Wells Fargo Homes Mortgage, said that a year ago the spread was more than a full percent, but has fallen to about a half percent, making it more attractive to buy or refinance higher-priced houses.
"The good news now is that the spread has narrowed and rates have come down," he said.
Brian Call, president of Rubicon Mortgage Advisors in Edina, said he's aware of at least a few wholesale lenders who have re-entered the jumbo market or have increased lendable loan-to-value ratios.
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