George S. May Business Blog

Mortgage rates plummet to record lows

Homeowners, if you haven’t refinanced your mortgage, now may be the time:

“Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.

Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971 and was down a full percentage point from a year ago.

The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit…

In Freddie Mac’s survey, the average rate on a 15-year fixed-rate mortgage dropped to 4.58 percent this week, down from 4.61 percent last week.

Rates on five-year, adjustable-rate mortgages fell to 4.96 percent, compared with 4.98 percent last week. Rates on one-year, adjustable-rate mortgages rose fell to 4.85 percent, from 4.91 percent.” (source)

Because of the falling rate, mortgage applications have surged with people looking to refinance and save money on their monthly payment. This might trigger the freefall to slow for a bit. But if I were a betting man, I would put my money on the fact that rates will fall even further.

Related posts:

1. Mortgage delinquencies continue to climb Well, it is just natural progression. If you don’t have a job, then you can’t pay your mortgage. With unemployment hitting record numbers and still...


2. Federal Reserve sees a light at the end of the tunnel — will continue to hold down rates Even the Fed is admitting that our economy is in recovery mode. In a recent statement, the Federal Reserve’s Federal Open Market Committee said that...


3. Fed’s Zero Percent Interest Rates May Cause Problems The Federal Reserve’s traditional role of setting the interest rate has been admittedly easy since they set the rate at 0%. The low, low rate...


4. Black Friday weekend posts record numbers The retail numbers from Black Friday weekend have come in and were surprisingly good. At a time where everybody seems to be penny pinching, shoppers...