Mortgage Rates Fall to Record Lows

by: Mark J. Perry

Based on data released Thursday by Freddie Mac:

1. Rates for the 30-year fixed mortgage fell to a new all-time historic low this week of 4.15%, which is slightly below previous record low for the 30-year rate in mid-November of last year of 4.17% (see top chart above).

2. The average fixed rate for 15-year mortgages fell to 3.36%, the lowest rate in the history of this series, which started in 1991 (see middle chart).

3. The rate for one-year adjustable mortgages fell to 2.86% from 2.89% last week, setting a new all-time record low going back to April 1986, when weekly data for ARMs started being collected (see bottom chart).

It's a great time to buy a house or refinance your mortgage. For the current median price home of $174,000, with a 20% down payment, monthly payments for principal and interest would be:

30-year 4.15% fixed rate: $676.66 per month
15-year 3.36% fixed rate: $985.57
1-year 2.86% ARM: $576.41