Okay, buyers, you're getting another chance at near-historic low mortgage rates. The lackluster jobs data released this week gave investors more reason to worry that the economic recovery isn't taking hold. That means cash is flowing into bonds, and mortgage interest rates are falling.
The latest report is from Freddie Mac, which said Thursday that mortgage rates fell for the 7th week in a row to new lows. Here are the highlights:
- The 30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average of .6 points, down from last week when it averaged 4.6 percent. Last year at this time, the 30-year FRM averaged 4.79 percent.
- The 15-year FRM this week averaged 3.74 percent with 0.7 points, down from last week when the average was 3.78 percent. A year ago at this time, the average was 4.20 percent.
These declines seem small, but they can make a big difference on a monthly basis depending on the size of your mortgage. Here's an example: If you have a $250,000 30-year fixed-rate mortgage, your payment at 4.55 percent, your monthly principal and interest payment would be about $1,274. If the rate were 1 percentage point higher, you'd pay an additional $153 per month. To calculate your own payment (or to see if a refinance makes sense), go to dinkytown.net or to the mortgage calculator at HSH Associates.
