The Truth About Mortgage.com

Mortgage rates trickled lower during the week, with the 30-year falling dangerously close to record territory, according to mortgage financier Freddie Mac.

The 30-year fixed averaged 4.87 percent during the week ending October 8, down from 4.94 percent a week ago and 5.94 percent a year ago.

The ever popular mortgage now sits just five basis points above its record low, which was set back in late May of this year.

Meanwhile, the 15-year fixed continues to break records after falling to 4.33 percent this week; it averaged 4.36 percent last week and 5.63 percent a year ago.

That’s a new all-time low, going all the way back to 1991, when Freddie began tracking it.

The five-year ARM also hit a new low, falling to 4.35 percent from 4.42, and handily beating its year-ago average of 5.90 percent; of course it has only been tracked since 2005.

Finally, the out-of-favor one-year adjustable-rate mortgage crept up four basis points, bucking the trend, but it still remains lower than the 5.15 percent seen this time last year.

The rates above are good for conforming loan amounts with a loan-to-value of 80 percent; keep in mind that pricing adjustments will affect the rates seen here.

Mortgage rates for jumbo loans continue to price about a percentage point higher.

“Interest rates for 30-year fixed-rate loans were the lowest since mid-May; 15-year FRMs were at a record low since data were first collected in 1991 and 5-year ARMs also hit an all-time record starting in 2005,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

“Compared to a year ago, consumers could shave almost $134 off their monthly mortgage payments on a 30-year fixed-rate loan for $200,000 by refinancing.”