This was in the Wall Street Journal and has some very interesting information in it. Now's the time to buy before interest rates go up!
By MIA LAMAR And RUTH MANTELLMortgage rates in the U.S. remained near their 60-year lows over the past week, while the average rate on 30-year fixed mortgages struck an all-time low, according to Freddie Mac's weekly survey of mortgage rates.
The average rate on the 30-year fixed-rate mortgage fell to a record low 4.09%—these data go back to 1971—from 4.12% in the prior week, according to the buyer of residential mortgages. A year ago, the rate was at 4.37%.
"Continued investor concerns over the state of the European debt markets kept U.S. Treasury bond yields low and allowed mortgage rates to ease once more this week," said Frank Nothaft, Freddie Mac's chief economist, in a statement. "By refinancing into today's 30-year fixed mortgage, homeowners could shave almost $1,715 a year in interest payments on a $200,000 loan."
Meanwhile, the average rate on the 15-year fixed-rate mortgage also hit a record low, declining to 3.30% in the latest week from 3.33% in the prior week. These data go back to 1991. The five-year Treasury-indexed hybrid adjustable-rate mortgage rose to 2.99% from 2.96%. The 1-year Treasury-indexed ARM also hit a record low, declining to 2.81% from 2.84%. These data go back to 1984.
To obtain the rates, 30-year fixed-rate mortgages required an average payment of 0.7 point, while 15-year fixed rates required an average 0.6 point payment. Five-year and one-year adjustable rate mortgages required an average 0.6-point payment. A point is 1% of the mortgage amount, charged as prepaid interest.