Mortgage Rates Hit Record Low

It continues to be a buyer’s market out there — for those with enough money to make a down-payment on a home at least — as mortgage rates continue to sink to historically low levels.

According to Freddie Mac, the average 15-year fixed-rate mortgage was only 3.5% this week. That’s a record low for 15-year mortgages. Meanwhile, 30-year fixed-rate mortgages averaged 4.32%, which is close to a record low and the lowest in number in nine months.

From USA Today:

While interest rates have been going down for three years, home sales have remained weak because of the dour economy. But refinance applications were up 30% for the week ended Aug. 5, putting them at their highest level of the year, the Mortgage Bankers Association says.

Some hope that potential home buyers who have been on the fence about making a purchase will choose to take advantage of the low interest rates and finally buy some property. And with 63% of home mortgages having interest rates over 5%, there could be even more people looking to refinance at the lower rates.

Mortgage rates reach record lows, sparking refinancings [USA Today]