Thanks largely to the debt turmoil in Europe, mortgage rates are plumbing new lows this week. If you’ve been on the fence about taking advantage of these rates, now is definitely the time to jump into the market and refinance.
Mortgage interest rates hit new lows this week as both the 30-year and the 15-year fixed-rates fell, according to a weekly survey by Freddie Mac. It was the second consecutive week that rates broke records.
The 30-year, the most popular mortgage product, fell by 0.01 percentage points to 3.83%. Last year at this time, it stood at 4.63%. The new lows can save borrowers $46 a month for every $100,000 borrowed. Over a 30-year term that comes to more than $16,000.
The 15-year fixed dropped by 0.02 percentage points to 3.03%, lowering borrowing costs to $692 a month for every $100,000 borrowed, a $38 savings compared with a year earlier. Borrowers would pay out only $24,565 in interest over the life of the loan.
Is it possible rates could go lower from here? Sure, anything’s possible! But rates have far more room to go up than down at this point. If you refinance now and rates drop lower in the months and years ahead, you can always refinance again if you need to.