After a prolonged period of steady increases, mortgage interest rates have recently begun a welcome descent. Over the past couple of years, homeowners and prospective buyers experienced the challenges of rising rates, grappling with higher borrowing costs and potentially impacting affordability. However, the current trend signals a positive shift, providing relief to those in the housing market. The decline in interest rates could stimulate increased home buying activity and potentially alleviate financial strain on existing homeowners looking to refinance. This reversal in the interest rate trajectory may contribute to a more favorable and dynamic real estate landscape, offering opportunities for both buyers and sellers to navigate the market with a renewed sense of optimism.
Average rates: August 20, 2024
Loan amount $300K – Down payment 20%
State – Indiana
Credit score 740
Conv. 30-yr fixed 6.625% – APR = 7.090%
Conv. 15-yr fixed 5.500% – APR = 6.230%
FHA 30-yr fixed 5.625% – APR = 6.420%
FHA 15-yr fixed 5.50% – APR = 6.230%
An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan.
