As Global Grew, 30-Year Mortgage Rates Drop Have Dropped - Now Mortgage Rates are Below 4%

For the first time ever, 30-year fixed-rate mortgage rates have fallen to well below 4 percent, according to a mortgage market survey provided by Freddie Mac. 

In the past month mortgage interest rates have continued to set new weekly record lows, but the 30-year mortgages’ latest drop below 4% may be an important threshold for potential home buyers. The 30-year fixed rate mortgage loan is the most popular financing option for home buyers.

Mortgage rates are expected to stay below 4% through 2011 before they start rising in 2012. Home buyers taking out loans for home purchases are expected to more than double in the next two years according to a recent Inman News housing report.

According to a Freddie Mac chief economist, mortgage interest rates have continued to free-fall as concerns over a global recession grew.  

Here’s a closer look at rates for the week ending Oct. 6.

• 30-year fixed-rate mortgages: averaged 3.94 percent this week, down from last week’s previous record low of 4.01 percent. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.27 percent. 
• 15-year fixed-rate mortgages: averaged 3.26 percent, another all-time low. This is the sixth-consecutive week the 15-year mortgage has posted new average record lows. Last week, 15-year rates averaged 3.28 percent. Last year at this time, 15-year rates averaged 3.72 percent. 
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, dropping from last week’s 3.02 percent. A year ago, the 5-year ARM averaged 3.47 percent. 
• 1-year ARMs: averaged 2.95 percent, the only mortgage rate to move up last week. Last week, the 1-year ARM averaged 2.83 percent. A year ago, the 1-year ARM averaged 3.40 percent. 

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Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty 

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