The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances decreased to 3.91 percent, lowest rate in history for 80 percent loan-to-value ratio loans, according to a report from the Mortgage Bankers Association.
The report showed that the average contract interest rate for 30-year fixed-rate mortgages with large loan balances (greater than $417,500) dropped to 4.23 percent.
This is largely due to nationwide home prices dropping 36 percent from their peak. Meanwhile, median income has increased by about 10 percent, and mortgage rates are below 4 percent.
The contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.70 percent, the lowest rate in history.
Home affordability has not been as good as it is now, according to the National Association of Home Builders and Wells Fargo Housing Opportunity Index.
