Mortgage Rates are Hot, Hot, Hot
Mortgage rates fell for a third consecutive week, pushing the 15-year fixed to its lowest point ever recorded, according to the latest survey from mortgage financier Freddie Mac.
The 15-year fixed slipped to a record low 4.32 percent from 4.40 percent, and now sits well below the 5.73 percent average seen this time last year.
The popular 30-year fixed also neared its record low, averaging 4.83 percent during the week ending November 19, down from 4.91 percent a week earlier and 6.04 percent a year ago.
It hasn’t been lower since falling to 4.78 percent back in early April of this year.
The five-year adjustable-rate mortgage fell 10 basis points to 4.25 percent, and is nowhere close to the 5.87 percent average of a year ago.
The one-year ARM got in on the fun as well, falling to 4.35 percent from 4.47 percent, and handily beating its year-ago average of 5.29 percent.
“Interest rate on 30-year fixed-rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15-year fixed rates were the lowest since our records began in 1991,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“Low fixed rates throughout the third quarter prompted an estimated $1.1 trillion in refinancing activity, saving homeowners about $10 billion in aggregate monthly payments over the first 12 months of their new loan.”
The interest rates quoted above are good for conforming loan amounts at a loan-to-value of 80 percent.
Keep in mind that other mortgage pricing adjustments may increase or decrease the actual interest rate you receive; and jumbo loans continue to price a percentage point or more higher than conforming loans.
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