According to the Primary Mortgage Market Survey by Freddie Mac mortgage rates have continued to free fall.
Currently Rates are:
- 30 year fixed – Averaged 4.36% – Last week it was at an average of 4.42%. A year ago this week the 30 year rate was at 5.14%.
- 15 year fixed – Averaged 3.86% – Last week it was at an average of3.90%. A year ago this week the 15 year fixed 4.58%.
- 5 year ARM (Adjustable Rate Mortgage) – Averaged 3.56% which was the same as last week. A year ago this week the 5-year ARM 4.67%.
The 30 year fixed and 5 year arm are based on an average of 0.7 points, and the 15 year fixed is based on .06 points. Additionally the rates posted are based on an average from across the nation and may not necessary reflect the mortgage rate you will receive if you refinance today.
This is a wonderful time for those that have a mortgage to refinance to take advantage of the lowest rates this country has seen in decades. Hundreds and thousands of dollars are being saved by those able to refinance their existing mortgage to a lower rate. The trouble for most homeowners is the lack of equity in their home caused by the current recession which makes them unable to refinance.
How will this effect the ecomony?
As for how this will effect the economy the opinions are being reflected as both positive and negative. Many believe this is just more troubling news for an ever weakening economy. Signs that things are getting worse and we are not on the road to recovery quite yet.
Other experts feel these low rates could put more money in consumers pockets due to the savings from refinancing. This higher cash flow could help spur the economy on for the better.
Time will tell. Let us know your thoughts in the comments below.