Current mortgage rates are approaching all-time lows. According to Freddie Mac, the average current mortgage rate on a 30-year fixed-rate mortgage is at 4.94%, only percentage points above the record low of 4.78% we experienced in April. In addition, if borrowers can pay points (1 point is equal to 1% of the loan amount), the current mortgage rates are even more attractive.
At this point last year, the average mortgage rate on a 30-year fixed-rate mortgage was over 6%, while the 15-year fixed-rate mortgage was at 5.78%. Today, the 15-year fixed-rate mortgage is at a record low 4.36%, nearly 1.5% lower than last year at this time.
The low current mortgage rates are stabilizing the housing market. Significant amounts of refinances are expected to continue through the first quarter of 2010 as the Federal Reserves continues to purchase the $1.2 trillion in mortgage-backed securities it committed to earlier in the year. However, purchase sales are expected to curtail as the $8,000 first-time homebuyer tax credit is expected to expire on November 30.
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