Real Estate News

Jumbo mortgage rates decrease in latest assessments

Published: 30 Mar 2017

New data has shown a decline for 30-year fixed jumbo mortgage loan rates, according to information culled by The Motley Fool. As of March 24, the source said these rates, which account for loans in excess of $417,000, are .14 percent lower than they were in February.

It's notable not just of itself but also because it was one of the few rates to also be lower than its previous percentage at all. The only other measure that decreased was the rate for the 15-year fixed refinance mortgage, which was .04 percent lower than a month ago. The source added that these rates are a far cry from those of a decade ago, when a fixed mortgage for 30 years had a national average rate of 6.16 percent

Freddie Mac reported similar declines in rates in a March 23 statement. The article said that 30-year fixed mortgages were at 4.23 for the week. This was .07 percent lower than the previous week, though it was still higher than both the 15-year fixed rate mortgage and the adjustable-rate mortgage, and has been significantly above them since March 16. At that point, the 30-year FMR was at 3.75 percent.

Earlier this month, the Mortgage Bankers Association reported jumbo loan balances with 30-year fixed rates as well. As part of its March 22 Weekly Survey, the MBA said that the average contract interest rate for this product decreased .04 percent in the span of a week.

The average interest rate for 5/1 ARMs also dropped by the same amount during this time. In general, ARM activity seemed to do well at this point, accounting for 9 percent of all mortgage applications, even while the Market Composite Index declined 2.7 percent.