Rates Steadily Drop as Feds Postpone Tapering Purchase of Bonds

For those of you waiting for rates to decline, now may be a good time to proceed with homebuying and refinance. As confidence in an improved economy increases, rates continue to go down, giving you the right opportunity to lock in on your home financing.

As the Federal Reserve Board holds off on tapering bond purchase, “mortgage rates tumbled down this week” Sr. Loan Processor Brady Benham at Redondo Mortage Center reports:

4.47% (30-year fixed)
0.33 (average points)

The 30-year fixed-rate mortgage fell 19 basis points to 4.47 percent. A basis point is one-hundredth of 1 percentage point.

The 15-year fixed-rate mortgage fell 17 basis points to 3.53 percent. The average rate for 30-year jumbo mortgages, or generally for those of more than $417,000, fell 13 basis points to 4.64 percent.

The 5/1 adjustable-rate mortgage fell 14 basis points to 3.41 percent. With a 5/1 ARM, the rate is fixed for five years and adjusted annually thereafter.

Subsequently, as the real estate market stabilizes and slowly deflates the “seller’s market bubble,” it opens up opportunities for homebuyers to avail of a home at lower interest rates.

For any homebuying or refinancing questions you may have, please do not hesitate to call any of our officers at 310-318-8999 for a free consultation. You may also visit www.redondomortgage.com

Source: http://www.bankrate.com/finance/mortgages/rate-roundup.aspx#ixzz2gOK8n0Ey