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Today’s Massachusetts Mortgage Rates: What to Know Before Making a Massachusetts Home Purchase – NextAdvisor

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Buying a home in the Bay State can get pretty expensive. The median price of a single-family home in Massachusetts is $629,000, which is 43% higher than the national median of $440,300, and closing fees can cost nearly $8,000. But home prices vary widely across the state, so you may find a deal in smaller areas. Here’s what to know about mortgage rates, home prices, and down payment assistance in Massachusetts. 

What Are Today’s Mortgage Rates in Massachusetts?

For Tuesday, August 16, 2022, here are the current mortgage rates in Massachusetts. The average 30-year fixed mortgage rate is 5.330%. The average 30-year fixed mortgage refinance rate is 5.380%. Today, the average 15-year fixed mortgage rate is 4.680%.

For variable rate loans, the average 5/1 adjustable-rate mortgage (ARM) rate is 3.970%. 

This information is from Bankrate’s latest survey of the nation’s largest mortgage lenders.

Current Mortgage Rates in Massachusetts

Loan Type Rate
30-year Fixed 5.330%
15-year Fixed 4.680%
5/1 ARM 3.970%
30-Year Refi 5.380%

How Much of a Mortgage Do You Need to Buy a Home in Massachusetts?

High prices make it harder to save for a down payment, which is money you commit toward the home purchase upfront. Conventional loans require a down payment of at least 3% of the home’s purchase price, which works out to $18,870 on a median-priced home in Massachusetts. FHA loans require either 3.5% or 10% down, depending on your credit score, and you might not need a down payment at all for some mortgage programs such as VA loans and USDA loans.  

Some good news: “We’re certainly seeing a reduction in the higher-priced homes,” says Matthew Ricci, a home loan specialist with Churchill Mortgage. “Anything over $650,000 or $750,000 is starting to have a decent reduction in a lot of the areas outside of Boston or even southeastern Massachusetts.” 

That’s because demand for high-price homes generally dips, Ricci says, when the stock market is shaky and interest rates are high. 

The table below shows how much a down payment might cost in different metro areas in Massachusetts.

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Source: https://time.com/nextadvisor/mortgages/mortgage-rates-massachusetts/

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Metro Area Median Home Price 3.5%