A Year Ago Mortgage Rates Hit An All-Time Low, And Now?November 21, 2013
The average rate for a conforming 30-year mortgage ticked down to 4.22 percent over the past week, 36 basis points lower than the two-year high of 4.58 percent measured in August. Absent any big negative economic news, the Fed’s talk of tapering its bond purchase program will likely cause mortgage rates to tick back up despite the Fed’s concerns and intentions.
The average 30-year fixed mortgage rate was 3.31 percent at this time last year, the all-time recorded low, having averaged 6.71 percent since 1990 and 8.61 percent over the past 40 years.
In terms of the 30-year rate for Jumbo loans over $625,500, Wells Fargo is currently advertising a rate of 4.125 percent, a discount of .375 points as compared to the 4.50 percent rate they’re advertising for both regular conforming and super conforming loans over $417,000 in high cost areas like San Francisco.
Comments from Plugged-In Readers
As long as the [rate] stays sub 5% for the next year or two, it’ll be all good.
What happen’s after the next year or two?
Maybe you mean that, by then, most or all of the current new construction will be sold off, and the banks and developers will be safely out of Dodge counting their money, leaving the suckers in their fancy new but shoddily-built boxes to bankruptcy when their asset values plummet, and the next wave of MBS-fueled CDS implosion craters the rest of the economy?
Good times ahead!
Well you certainly won’t have anything to worry about, all snuggled up in your cheap rent controlled apartment, now will you 😉
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