The lowest mortgage rates on record were posted during the week of June 21. Buyers and homeowners are seeing unprecedented opportunities for finding affordable mortgage loans.
Summer is starting with a burst of low mortgage rates. HSH Associates reports that average rates for a 30-year fixed-rate mortgage (FRM) fell from the previous week's 5.11% to 5.07%, while average rates for a 15-year FRM fell by 3 basis points from 4.56% to 4.53%.
5/1 hybrid adjustable-rate mortgages (ARMs) are offering great rates: the average rate for this type of home loan fell from 4.17% to a rock-bottom 4.12%.
The combined impact of sluggish home sales and continuing high unemployment rates are keeping mortgage rates low. Although summer is traditionally the busiest season for buying homes, this year's market is being swamped by economic woes and a "hangover" of slow home sales caused by the rush earlier this year by home buyers to qualify for the federal tax credit program deadline of April 30.
Current Mortgage Rates Provide Incentive for Getting Off the Fence and into a New Home
While mortgage rates can vary depending on individual circumstances, including down payment amount, credit scores, and income, low mortgage rates in general provide additional buying power, lower mortgage payments, and the ability to pay off your mortgage loan faster if you choose a shorter loan term.
Today's low mortgage rates are allowing qualified buyers to start out with a stable fixed-rate mortgage loan or very low monthly payments with the initial fixed-rate period of a hybrid ARM. Homeowners wishing to refinance can also benefit from a shorter mortgage term or a hybrid ARM loan offering a low fixed rate for an initial period.
Refinance Your Mortgage for Home Improvement, Debt Consolidation
Refinancing at current mortgage rates can offer an attractive alternative to more expensive home improvement financing alternatives. With sufficient home equity, you may also qualify for refinancing for consolidating costly consumer debt at much lower mortgage rates. Consulting a financial advisor can help with determining the best ways refinancing can improve your financial situation.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.