30 Year Mortgage Rates Drop to Record Low (Again)
There are have been a number of mortgage rate predictions flying about lately, and it is interesting to see how rates have been playing out. Right now, 30 year mortgage rates have returned to record lows as pressure remains on the housing market. Right now, the average 30 year mortgage rate is at 4.78%. That’s pretty darn low. And other mortgage rates have followed suit, reports MarketWatch:
The 15-year fixed-rate mortgage averaged 4.48% this week, unchanged for the third week in a row. It is also tied for the lowest rate recorded during the survey; Freddie Mac began tracking this mortgage in 1991. The mortgage averaged 5.59% a year ago.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.80%, down from 4.85% last week and 5.73% a year ago. This week’s rate is the lowest since Freddie Mac began tracking the product in 2005.
It is interesting to note that fixed rate mortgages are actually lower than adjustable rate mortgages. Normally you see an adjustable rate that is lower. But there is a lot of emphasis right now on home buying, and many borrowers have learned the lesson of the last decade: adjustable rate mortgages are likely to come back to haunt you in a major way. As a result, many are asking (and getting) lower fixed rate mortgages.
Of course, in order to take advantage of the best rates you have to have good credit and a reasonable down payment. For those trying to refinance to one of these lower rates, a reasonable amount of equity is needed in the home. However, if you have lost equity due to falling home values, it is still possible for you to refinance. Plans aimed at helping those who want a second home mortgage are in effect, and some of them do not require you to have a great deal of equity in your home.
May 4th, 2009 at 2:50 pm
[…] look for home loans again. Demand for traditional mortgages is up, probably due to a combination of low mortgage rates, low home prices and government incentives. And, while traditional mortgages are in high demand, it […]
May 11th, 2009 at 2:23 pm
[…] 30 Year Mortgage Rates Drop to Record Low (Again) There are have been a number of mortgage rate predictions flying about lately, and it is interesting to see how rates have been playing out. Right now, 30 year mortgage rates have returned to record lows as pressure remains on the housing market. Right now, the average 30 year mortgage rate is at 4.78%. That’s […] […]