The benchmark 30-year fixed-rate mortgage fell to a national average 5.17% this week, the lowest level since Freddie Mac began its weekly rate survey in 1971. Mortgage rates are incredibly low right now but will they stay that way? Well, it depends on who you ask. According to Bankrate analysts, more than 2/3 of analysts believe rates will fall during the next 35-45 days.
Steadily dropping interest rates are pushing more people to apply for mortgages and to refinance existing home loans. According to MarketWatch.com, applications to refinance existing mortgages accounted for 76.9% of all filings last week. When the real estate market was great, many home buyers took out ARMs, thinking they would sell in a couple of years and make a pretty penny. Many of those homeowners are now realizing their chances of selling are pretty slim, or they owe more than their house is worth. If you’re in that situation and now plan to stay in your home for the long-term, you might want to consider locking in at today’s attractive fixed mortgage rates.
In order to lock a low rate you must have a full application ready and on file. If you’re considering getting a loan or refinancing, don’t wait to apply for a loan until you see the rate you want, start the application process now.
Click on the link for a graph of mortgage rate fluctuations.