Today, Bank of America is offering a thirty-year fixed rate mortgage (FRM) as low as 4.375%, up from last week when the 30-year fixed averaged 4.250%. For a 30-year fixed interest-only mortgage the interest rate for this type of loan remains at 5.00%, untouched these past few months.
A couple other common mortgages are the 5-year adjustable-rate mortgage (ARM) and the 5-year interest-only ARM. Currently, the 5-year ARM is averaging 2.875%, down from 3.00% last week, while the 5-year interest only ARM is steady at 3.00%.
“Although mortgage rates were little changed following the Federal Reserve’s decision to purchase $600 billion of Treasury bonds over the next eight months, mortgage applications increased last week,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “The increases in purchase applications we have seen over the past couple of weeks align with the better than expected news from October’s employment report and other data indicating some improvement in the economy’s growth prospects."