Mortgage rates are now at their lowest point in 2011, according to Freddie Mac’s Primary Mortgage Market Survey. The average rate on a 30-year fixed rate mortgage fell from 4.71 percent to 4.63 percent. 15-year fixed rates dropped 7 basis points to 3.82%. The average rate for a 5/1 ARM dropped from 3.47% to 3.41%, while 1 year ARMs dipped to 3.11%.
Rates have been falling steadily since the middle of April, when the average 30-year rate was as high as 4.91%. The all-time low occurred last fall when 30-year rates were as low as 4.17%. Refinancing has increased over the past two weeks as interest rates have declined, although refinance applications are still substantially lower than they were at the same time last year. This is largely because many who were able to refinance did so last fall, while those remaining are unlikely to qualify due to stricter underwriting requirements and widespread declines in home value which preclude many people from refinancing their mortgage. Approximately 3 in 10 homes with mortgages are underwater, a fairly stunning number that will haunt the economy and the housing market for years to come.
In any case, if you are looking to refinance, or you are considering purchasing a home this summer, now could be the time to take advantage. Total Mortgage has some of the best rates in the country, consistently beating the national average. For a free consultation with one of our mortgage professionals, or to learn more about our rates, products, or free mortgage pre-approval process, call us today at 877-868-2503.
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