Maryland Department of Housing and Community Development Announces the Lowest Rates in the History of the Maryland Mortgage Program
Interest rate of 3.25 % signals an opportune time to buy after the typical summer homebuying season
CROWNSVILLE, MD (September 26, 2012) – Maryland Housing Secretary Raymond A. Skinner today trumpeted the astonishingly low rate of 3.25 % (APR 4.082 %) for the Maryland Mortgage Program. The rate is the lowest in the 30-year history of the state’s flagship mortgage program.
"I urge prospective buyers to lock-in these rates while they can," Secretary Skinner said. "While we cannot guarantee our rates will remain at this historic low, we can guarantee that the Maryland Mortgage Program will be competitive. With our low rates, generous downpayment and settlement cost assistance, and with the Maryland housing market showing marked improvement – now is an excellent time to buy."
The Maryland Mortgage Program offers a variety of low-interest, fixed-rate mortgage loan options with down payment and closing cost assistance for first-time homebuyers; qualified veterans or purchasers in a targeted area are eligible for a one-time exemption to the first-time homebuyer requirement.
During the summer homebuying season, the department unveiled other products targeted to specific homebuyers:
- Targeted Areas Initiative: offers a reduced interest rate of 2.875% (APR 3.675%) in targeted areas throughout the state, including Baltimore City.
- Maryland Homefront: the Veterans and Military Family Mortgage Program: a $50 million initiative that offers half a percent rate discount off the regular MMP rate for loans reserved up to June 30, 2013 or until the program funds have been expended. Today’s announcement includes a low rate of 2.75 % (APR 2.914% for VA and APR 3.536% for FHA) for Maryland Homefront over the past two days.
- Conventional Mortgage Loans—just announced this month!
Today’s announcement comes after a recent announcement by Governor Martin O’Malley of positive trends in both the state and Baltimore City’s housing markets. Home sales statewide increased for the fifth consecutive month in June, marking the most home sales in one month since June of 2010.
"Recent data from the Maryland Association of Realtors indicates that housing affordability in the state has significantly improved since the housing peak of 2007 for both repeat and first time homebuyers," said DHCD Research Director Massoud Ahmadi. "Mortgage rates hover around historic lows and home prices are at 79 percent of the Maryland peak bubble price. As a result, housing affordability reached its highest August mark since 2000."
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The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD’s programs, visit www.mdhousing.org.
News updates also are available by following DHCD on Twitter (www.twitter.com/MDHousing) and Facebook (www.facebook.com/marylandhousing).
For more information:
Director, Office of Communications and Marketing
Deputy Director, Office of Communications and Marketing