Freddie Mac said in its weekly survey of lenders, for the fifth week in a row Miami mortgage rates have declined. Interest rates for Miami real estate properties are at their lowest level of the year, with 30-year fixed-rate loans below 5%.
Early this week, lenders were offering 30-year fixed home loans at 4.93% on Miami real estate properties which was down from 5.0% last week. The mortgage company said that rate was with borrowers paying 0.7% of the loan balance upfront.
The average rate on 15 year fixed loans was 4.30%, with 0.6% charged in upfront fees and points, down from 4.36 percent a week earlier.
Freddie Mac said the five-year hybrid Treasury indexed adjustable-rate mortgage averaged 3.95%. This loan type is a fixed rate for the first five years and at it’s lowest since they began tracking it in 2005.
U.S. Treasury securities are in strong demand because of the European debt crisis, driving down the yield or effective interest rates that they pay. Mortgage rates usually move together with the yield on Treasury securities.
Mortgage professionals say well qualified borrowers can usually negotiate lower Miami mortgage rates than those in the Freddie Mac survey. The catch, of course, is being well-qualified at a time when home prices have plummeted and the nation has endured the worst economic downturn since the Great Depression.
The survey is based on borrowers with good credit that can put down at least 20% or if they are refinancing have an equivalent amount of equity in their Miami homes.
Contributed by MLR Realty
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