Mortgage Rates are the Lowest they’ve Been All Year

Mortgage rates were at a 2017 low point heading into the holiday weekend, according to Bankrate.com’s weekly national survey.

The benchmark 30-year fixed mortgage rate dropped to 3.97 percent last week, from 4.02 the week before.

This is the first time the 30-year fixed have been below 4 percent all year. In fact, it hasn’t been below 4 percent since last November).

The average 15-year fixed mortgage rate dipped to 3.20 percent. The average 5-year ARM (3.47 percent) is also modestly lower than a week ago, as is the average 30-year jumbo (3.99 percent).

Mortgage rates have been in a modest downtrend over the past two months — despite economic growth that was stronger than expected in the second quarter

Bankrate said the culprits have alternated between low inflation readings, reduced expectations for additional rate hikes by the Fed this year and the on again, off again spats with North Korea.

With mortgage rates moving below 4 percent, this is a key threshold for homeowners that missed the refinancing opportunity in 2016. Lower mortgage rates also ease the pressure of monthly payments for would-be homebuyers.

At the current average 30-year fixed mortgage rate of 3.97 percent, the monthly payment for a $200,000 loan is $951.37.

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