Mortgage rates fell to new record lows, with these record low rates coming on the heels of homebuyer tax credits designed to bring consumer into the real estate marketplace. These rates also represent a golden opportunity for homeowners looking to refinance, either to reduce the rate on existing fixed rate loans or to get out of adjustable rate mortgages in favor of locking in low fixed rates. For homeowners owing more than their homes are currently worth, the Home Affordable Refinancing Program represents an opportunity to take advantage of low rates for eligible borrowers. Historically, mortgage rates don't stay at record levels for long, so even though rates are unlikely to spike, grabbing record low rates means borrowers should act with some urgency.
Mortgage rates are significantly lower than one year ago. This time last year, the average 30-year fixed mortgage rate was 5.97 percent, meaning a $200,000 loan would have carried a monthly payment of $1,195.25. With the average rate now 5.06 percent, the monthly payment for the same size loan would be $1,080.99, a savings of $114 per month for a homeowner refinancing now.
SURVEY RESULTS
30-year fixed: 5.06% - down from 5.19% last week (avg. points: 0.40)
15-year fixed: 4.48% - down from 4.61% last week (avg. points: 0.34)
5/1 ARM: 4.58% - down from 4.58% last week (avg. points: 0.30)
