Same Old Song and Dance: Record Low Fixed Mortgage Rates Today
More concerns about Greece's debt and other countries' debt in the European Union have helped lower mortgage rates in the U.S. make record lows. Fixed mortgage rates today on both 30 year and 15 year loans made yet another all-time low in Freddie Mac's mortgage survey.
How is it that another country's debt trouble half a word away can drive mortgage rates lower in the U.S.? Lower Treasury yields are the reason. Right now investors are dumping the Euro because of the debt problems and fleeing to the safety of the U.S. dollar.
Investors are also fleeing to the safety of U.S. bonds. This is driving bond yields lower which in turn is forcing mortgage interest rates lower since mortgage rates are tied to bond yields.
Current 30 year mortgage rates are averaging 3.79% with 0.7 mortgage discount points in this week's Freddie Mac's Primary Mortgage Market Survey. 30 year rates are down from last week's average of 3.83%.
Remember these rates are the averages so there are lenders offering rates higher and lower than these rates. For example, Aimloan, Americash, Amerisave and Integrated Financial Group are all offering 30 year rates under 3.75%.
Today's 15 year rates are averaging 3.04% with 0.7 mortgage discount points, down from last week's average 15 year mortgage rate of 3.05%. Again, 15 year rates are average rates. You can find current 15 year rates lower than the averages.
Average adjustable mortgage interest rates are higher today. 5/1 adjustable mortgage rates are averaging 2.83% with 0.6 points. Last week the average 5 year adjustable rate was at 2.81%. 1 year adjustable mortgage rates are averaging 2.78% with 0.5 points, an increase from last week's average 1 year adjustable mortgage rate of 2.73%.
We will probably see mortgage interest rates make new all-time lows in the coming weeks and months. I don't expect to see rates to decline by much unless the economy falls back into a recession, which isn't likely.
Average fixed 30 year rates might go as low as 3.70% in the next few months and 15 year rates might hit a low of 2.90%. If you're for lower rates to move on buying a home or refinance a mortgage you probably shouldn't wait much longer since rates won't be going down much further from here.
RatesORama.com Average Mortgage Rates