Mortgage Rates Crash to Record Lows
According to a recent Freddie Mac survey, mortgage rates are falling this week across the board as a result of the faltering economy, with the rate on a 30-year fixed mortgage falling to 4.39% Thursday, its lowest level since November 2010 and a significant decline from last week’s 4.55%.
Related Feature: Commercial Mortgage Delinquencies Reach Record High.
With investors wary of the stock market turning to U.S. Treasury securities (NYSE:TLT), the yield on the 10-year Treasury note declined to 2.58% Thursday, down significantly from a 3.7% yield in February, and lending rates followed suit. Fifteen-year fixed mortgages, used most commonly for refinancing homes, fell to an average of 3.54%, down from 3.66% last week and beating the record low set in November of 3.57%. The five-year Treasury-indexed hybrid adjustable-rate mortgage fell from 3.25% last week to 3.18% this week, tying the record low.
Looking to refinance to historically low rates? Search for the lowest mortgage rate in your area now.
Borrowers shopping around can find even lower rates, especially if they are willing to pay more upfront. The lowest-risk borrowers could obtain a 30-year home loan at a fixed rate of less than 4% if they were willing to pay 3% or more in upfront fees and discount points. To obtain the current loan rate, they would have to put up less than 1%.