If you’re in the market to buy or refinance a home, you should be happy to know that mortgage rates are lower than they were a year ago. 

mortgagerates.com is surprised by this since it has been almost a year since a campaign was ended by the Federal Reserve to drive down long-term interest rates.  But a weak demand for home loans, along with a lot of foreign crises, trumped the Fed’s policy change and kept rates down. 

The website says, “the average cost of a conventional 30-year fixed-rate home loan — the most popular way to finance a home — costs nearly a quarter of a point less than this time last year. That decline reduces payments by about $13 a month for every $100,000 borrowed.”

When it comes to a 30-year jumbo mortgage, the average cost plunged to record lows this year.  Jumbo mortgages are now below that of conventional fixed-rate mortgages.  Keep in mind, that’s the average cost.  If you have good credit, expect to pay a quarter to half of a point less. 
 
Fannie Mae and Freddie Mac do not purchase jumbo loans.  The two government-owned companies that buy or guarantee most of the mortgages issued by banks and other lenders, usually don’t buy loans higher than $625,000, depending on the city.
 
Affluent buyers are the ones who usually need jumbo mortgages since they have rebounded from the recession more quickly.  As a result, there have been a surge in the sales of high-end homes, making up about one-fifth of all new mortgages. 
 
mortgagerates.com says high-dollar property sales has helped to push median home costs and average loan values to all-time highs this summer.
 
Whether it’s a jumbo mortgage or a conventional fixed-rate mortgage, you should always comparison shop.  Consumer Financial Protection Bureau says nearly half of Americans seriously consider only one lender or broker before applying for a mortgage. And about 75% fill out an application with only one lender.
 
Again, now is the time to buy.  The Mortgage Bankers Association now projects the average cost of a 30-year fixed-rate loan will rise to 4.3% by the end of the year and 5.2% by the end of 2016.

For now, home loans are not only cheaper, they're also easier to get, even for buyers not in the jumbo market.