With the small amount borrowers, jumbo borrowers too have benefited from the decrease in mortgage rates. Mortgage rates have registered a steep plunge for the 10th time in 11 weeks.
Mortgage rates offered to lenders, including single-family homes, have squeezed from more than 6% as recorded at the initiation of 2010 touching 5.26% this week, according to HSH Associates.
The Federal Housing Finance Agency has been marking an unceasing fall at a steady pace all throughout the year.
Early this week, 30-year fixed-rate loans were being offered at interest rates of 4.32%, marking a fall from 4.36% witnessed the preceding week and the lowest average recorded since 1971.
The current week witnessed lenders charging upfront fees of 0.7% on average of the total loan amount.
The recent financial turmoil had made it difficult for jumbo mortgages, primarily because of the squeezing of the securitization market. However, now the market boasts of some liquidity present in it as investors have been more confident seeking robust returns.
This week, the fixed-rate offered on fifteen-year loans averaged to 3.83% along with 0.6% charged under upfront fees. The present figures are lowered from 3.86% recorded last week and the lowest witnessed since 1991.