More weak economic data is increasing evidence that a summer soft patch has arrived - again. The loss of momentum means an even more sluggish recovery than was expected and that interest rates won't be rising any time soon. This has been very beneficial to mortgage rates, both the fixed and adjustable rate varieties. Adjustable mortgage rates, such as the 5/1 and 7/1 ARMs, have moved to record lows. Fixed mortgage rates are at the lowest levels since last Thanksgiving. For many would-be refinancers, the turkey is indeed on the table with the opportunity to refinance at sub-5 percent rates. But with lower federal loan limits scheduled to take effect in October, waiting too long could mean missing the chance to lock in historically low fixed rates if the loan amount becomes ineligible for government guarantees.
The last time mortgage rates were above 6 percent was Nov. 2008. At the time, the average 30-year fixed rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.69 percent, the monthly payment for the same size loan would be $1,036.07, a difference of $205 per month for anyone refinancing now.
SURVEY RESULTS
30-year fixed: 4.69% - down from 4.75% last week (avg. points: 0.39)
15-year fixed: 3.88% - down from 3.93% last week (avg. points: 0.37)
5/1 ARM: 3.39% - down from 3.45% last week (avg. points: 0.37)
