Mortgages

Mortgage Rates Approaching, Hitting Record Lows

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The government-controlled mortgage backing giant Freddie Mac recently announced that interest rates for both 30- and 15-year fixed mortgages continued to fall in the wake of the U.S. credit downgrade, according to a report from USA Today. Currently, 30-year loans carry average rates of 4.32 percent, down from 4.39 percent the previous week but still considerably higher than the all-time record low of 4.17 percent set in November 2010.

[Related Article: Mortgage Rates Drop: What to Know Before You Refinance]

However, interest rates on 15-year mortgages plunged to the all-time low of 3.5 percent from the previous week’s 3.54 percent, which was also a record at the time, the report said. These changes are largely due to investors, fearful of the continual declines in the stock market, moving their money into Treasury bonds.

As a result of these changes, many industry experts now believe consumers who have been mulling refinances of their existing home loans should pull the trigger, according to a report from Reuters.

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“In a few years, these rates will be a memory that people talk about at cocktail parties,” Dan Nigro, principal at Warfield Consultants in Montclair, New Jersey, told the news agency. “Just like when our parents talked about how low interest rates were when they bought their homes. These are the kind of levels that people should lock in for the long term and it certainly is what the government has in mind.”

Image: Universal Pops, Flickr

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