Boston Homes
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Mortgage rates trend down again



Several closely watched mortgage rates trended down this week. The average for a 30-year fixed-rate mortgage slid down, but the average rate on a 15-year fixed rose.


On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages tapered off.


The average rate for a 30-year fixed mortgage is 4.60 percent, down 13 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.82 percent.


At the current average rate, you’ll pay $512.64 per month in principal and interest for every $100,000 you borrow. That’s a decline of $7.80 from last week.


The average 15-year fixed-mortgage rate is 4.01 percent, up one basis point over the last seven days.


Monthly payments on a 15-year fixed mortgage at that rate will cost around $740 per $100,000 borrowed. Yes, that payment is much bigger than it would be on a 30- year mortgage, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.


The average rate on a 5/1 ARM is 4.18 percent, falling four basis points over the last week.


These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.


Monthly payments on a 5/1 ARM at 4.18 percent would cost about $488 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.


Jim Sahnger of the C2Financial Corporation said, “Rates will fall. Recent data regarding the economy has been bond friendly. That, coupled with comments from Fed Chair Powell that rates are just below neutral, should give the bond market more momentum leading into the first week of December. The bond market has been pretty tame during all the stock market volatility and now, with oil continuing to fall, inflation in check, continued concern over tariffs and geopolitical risks looming, we may now fall back towards a 10-year in the high 2.90s next month.”


Derek Egeberg, a certified mortgage planning specialist and branch manager at Academy Mortgage, said, “Rates will be flat this week through the holiday season. Look for rates to tick higher after the new year.”


Greg McBride, a senior vice president and chief financial analyst at, adds, “There is a lot of economic data over the next week. The reality of slower economic growth ahead will keep a lid on bond yields and mortgage rates.”