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At 4.87%, Mortgage Rates Flirt with Historic Lows
Mortgage rates have slipped below 5 percent in recent weeks and are nearing the generational low they reached earlier this year, according to statistics published by Freddie Mac. The average rate on a standard 30-year fixed-rate mortgage (FRM) stands at 4.87 percent, down from 4.94 percent last week. The 30-year FRM is considered the benchmark mortgage rate. It was 5.94 percent this time last year.
“Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing,” Freddie Mac vice president and chief economist Frank Nothaft said in a statement.
Rates reached their lowest point in decades back in May, bottoming out at 4.82 percent. They started rising during the summer but have come back down recently. Their retreat precipitated a rise in mortgage applications, which last week reached its highest level in 19 weeks, according to the Mortgage Bankers Association.
Following are examples of monthly payments for various mortgage amounts at today’s rate versus last year’s:
| Home Price | 20% Down | Mortgage | Payment/mo. at 4.87% | Payment/mo. at 5.94% | Monthly difference |
|---|---|---|---|---|---|
| $250,000 | $50,000 | $200,000 | $1,058 | $1,191 | $133 |
| $375,000 | $75,000 | $300,000 | $1,587 | $1,787 | $200 |
| $500,000 | $100,000 | $400,000 | $2,116 | $2,383 | $267 |
| $625,000 | $125,000 | $500,000 | $2,645 | $2,978 | $333 |
This article originally published at https://dc.urbanturf.com/articles/blog/at_4.87_mortgage_rates_flirt_with_historic_lows/1395.
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