Mortgage Rates Drop - a Good Time to Buy and Sell

Mortgage Rates Suddenly Drop Below 4.5%

 

Last week was a good week to shop government-backed loans. Mortgage rates dropped for loans of all types. FHA loans, conventional loans, Rural Housing loans, and VA loans each improved between Monday's open and Friday's close.

 

The price of a Fannie Mae bond improved roughly 100 basis points last week, as did the price of a Freddie Mac bond. This means that a mortgage rate which carried the cost of one discount point last week can now be locked with no points.

 

For every $100,000 borrowed, this reduces closing costs by $1,000.

 

In addition, FHA and VA loans saw similar improvement last week, as did loans backed by the USDA. Falling mortgage rates helped make homes more affordable nationwide and re-opened refinance opportunities for millions of U.S. households.