Realty World - Sierra PropertiesLicense #: 00319644

Realty World - Sierra PropertiesLicense #: 00319644

Jumbo, FHA Mortgage Rates Fall to Record Lows

The rates for jumbo and FHA loans dropped to all-time lows last week. Jumbo loans are for borrowers taking out larger loans while FHA loans offer borrowers’ low-down-payment loans. Their new lows fueled mortgage demand last week, the Mortgage Bankers Association reports.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) dropped to 3.18% last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 3.08%. The 15-year fixed-rate mortgage also saw new lows last week, decreasing to an average contract rate of 2.55%, MBA reports.

“The drop in rates spurred an uptick in demand for refinances,” says Joel Kan, MBA’s chief economist.

Source: Mortgage Bankers Association; “Jumbo and FHA Mortgage Rates Set Record Lows, Juicing Refinance Demand,” CNBC (Nov. 4, 2020); and “Mortgage Applications Jump 3.8 Percent as Refin

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