Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Apr 11, 2013

Advertiser Disclosure

Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.

All four types of mortgage loan interest rates lowered this week due to low employment reports according to a Freddie Mac survey.

For the week ending April 11, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.43 percent with an average 0.8 point, down from last week when the rate was 3.54 percent. The 30-year FRM has been slowly reducing since spiking to 3.63 percent on March 14. Last year at this time, the rate averaged 3.88 percent.

If a borrower took out a $250,000 home loan for the most common period of time, 30 years, the overall cost would be less now than it would have been one year ago.

At today’s mortgage loan interest rate of 3.43 percent, his or her monthly payment would be $1,112.87. After 30 years, he or she would pay a total of $400,633.20. If a borrower took the same mortgage out one year ago when mortgage loan interest rates were 3.88 percent, they would pay $1,176.31 monthly, for a total cost of $423,471.60 after 30 years. Using the current mortgage loan interest rate rather than last year’s, borrowers would save $22,838.40 over the lifetime of their loan.

This week’s 15-year fixed-rate mortgage averaged 2.65 percent with a 0.7 point. This rate is down from last week’s average of 2.74 percent. A year ago, the 15-year fixed mortgage loan interest rate averaged 3.11 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.62 percent with a 0.5 point this week, down from last week when it averaged 2.65 percent. At this time last year, the 5-year ARM averaged 2.85 percent.

This week’s 1-year Treasury-indexed ARM averaged 2.62 percent with a 0.3 point. The rate is down from last week’s average of 2.63 percent. A year ago, the rate averaged 2.80 percent.

According to Bureau of Labor Statistics report, employment in March was lackluster. Only 88,000 net new jobs were added last month, compared with the 236,000 jobs added in February. March added the least amount of net new jobs since June 2012.

“An uneven recovery as demonstrated by the recent weak employment and manufacturing reports have played a role in the declining rates for two consecutive weeks,” Frank Nothaft, vice president and chief economist at Freddie Mac, told “Today’s announcement, that jobless claims decreased by more than expected, may contribute to reversing that trend.”

Nothaft said Freddie Mac expects 30-year fixed mortgage rates to remain below four percent throughout 2013.

Not only were fewer jobs added, but nearly half a million people left the workforce, causing the unemployment rate to reduce to 7.6 percent.

Nothaft said a declining unemployment rate is critical for a sustained housing recovery.

“A declining unemployment rate and steadily improving housing market will deliver broad-based economic benefits for America’s families and, in turn, support the overall recovery,” he said.