Mortgage Rate News

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Mortgage interest rates continue to hover near historical lows. And this week, fixed mortgage rates, which have been inching higher, are dropping again. Indeed, with Treasury indexed mortgages dropping their rates, it is little surprise that other mortgage rates are following suit. Freddie Mac reports that the fixed rate mortgage is averaging around 5.06% nationally, which is slightly down from last week’s average of 5.09%. Of course, this time last year fixed rate mortgage could be had for 4.96%. But it’s still not bad at all, and many are scrambling to take advantage of this.

The most popular move right now, and what is prompting an increase in mortgage applications, is the refinance. MarketWatch reports on the popularity of refinancing right now:

“With fixed mortgage rates staying near a record low, many homeowners are taking the opportunity to refinance,” said Frank Nothaft, Freddie Mac chief economist, in a news release. “For instance, over the past three-and-a-half months, on average more than 75% of conventional mortgage applications were for refinance transactions, according the Mortgage Bankers Association.”

I’m interested in refinancing as well. Utah mortgage rates, where I live, are reasonably attractive, and I could see more than a point difference in my rate. Indeed, that is the rule of thumb most often cited  when you are considering refinancing. If you can get a rate that is at least 1% lower than your current rate, then you are likely to make up for the cost of the loan. Of course, many mortgage lenders are offering no cost refinancing in the hopes of wrangling up some more business.

In the end, whether you are buying a home or refinancing, there are a number of attractive rates. ARMs, fixed rate mortgages and hybrids are all offering a number of  bargains when it comes to rate. Of course, if you want the best mortgage interest rate, you will have to pay points and have a good credit score.