Mortgage rates in Boston fell this week. And prospective buyers are now using an aggressive tactic to purchase homes.
The benchmark 30-year fixed-rate mortgage in Boston fell to 4.41 percent from 4.47 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.22 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.43 percent.
The Boston area's real estate market has become highly competitive, where it's not uncommon to see multiple offers and bidding wars on a home, notes the Boston Globe.
In the midst of that competition, buyers are starting to use escalation clauses, a tactic that promises to pay a certain amount over the top bid on a home. One real estate agent tells the Boston Globe that around 75 percent of the offers he crafts include escalation clauses.
And though they can be risky, if crafted well those clauses can be a useful tool, notes the Globe.
The benchmark 30-year jumbo mortgages, for loans of $465,750 and up, remained at 4.38 percent. The benchmark 15-year fixed-rate mortgage fell to 3.45 percent from 3.48 percent. The benchmark 5/1 adjustable-rate mortgage fell to 3.02 percent from 3.05 percent.
Weekly mortgage survey
|Results from Bankrate's April 16 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $465,750 in Boston.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.41%||3.45%||3.02%||4.38%|
|Change from last week:||-0.06||-0.03||-0.03||N/C|
|Change from last week:||-$5.84||-$2.42||-$2.67||N/C|