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Refinance Rates Will Make New Record Lows This Week
 

Refinance Rates Will Make New Record Lows This Week

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An economic slowdown across the world along with the European Union's debt problems will send refinance rates to record lows this coming week. For the past several weeks both refi rates and mortgage rates made all-time record lows as bond yields declined to record lows. 10 year yields on Treasuries hit a low of 1.43 percent on Friday and have since increased to 1.54 percent.

Last week conforming 30 year mortgage rates which hit an all-time record low of 3.91 percent in the Mortgage Bankers Association's mortgage survey and in Freddie Mac's mortgage rate survey conforming 30 year rates hit an all-time low of 3.75 percent.

The difference in average rates between the two reports is because the MBA's survey was for the week ending May 25, 2012 and Freddie Mac's Report was for the week ending May 31, 2012. The MBA report is a trailing report when its released and Freddie's report is current as of the release date.

Treasury yields have declined since both reports were released late last week so today's mortgage rates are even lower than the average rate reported in the surveys.

Fixed conforming mortgage rates/refinance rates also hit record lows in both surveys. In the MBA survey 15 year rates averaged 4.23 percent and in Freddie Mac's survey 15 year rates were below 3.00 percent at 2.97 percent.

15 year mortgage rates today are even lower than the rates in last week's surveys. 15 year mortgage rates currently are averaging 2.93 percent. I still can't believe rates are that low. I remember just a couple of years ago you could get a 3 percent rate on a CD account or a savings account.

Author: Stacy Everest
June 5th, 2012