30-Year Mortgage Rates Drop To Record Low 4.57%

Rates on 30-year mortgages fell to 4.57% this week amid falling new home sales and increasing joblessness. It’s the third straight week that mortgage rates have dropped, and they’re the lowest since Freddie Mac started keeping track in the 70’s.

Normally homeowners try to refi when rates drop, but most who would have already done so, notes the NYT.


U.S. 30-Year Mortgage Rates Decline to 4.57%, Third Straight Weekly Drop [Bloomberg]
Mortgage Rates at Lowest Level Since 1950s [NYT]


Edit Your Comment

  1. Nigerian prince looking for business partner says:

    We just refinanced our house at 4.9% for 20 years about two months ago. I really wish we had a crystal ball and knew rates were going to keep going down — it seemed like all of the news outlets were claiming that rates had bottomed and were on the verge of shooting up by summer.

    • Loias supports harsher punishments against corporations says:

      I’ver been putting off a re-fi. I’m wondering if I should…

      • prizgrizbiz says:


        • AnthonyC says:

          You do not have the information necessary to make that determination.

          You don’t know their current loan’s rate, how long is left on the loan, their financial situation, what they’d use the savings from the reduced payments for, or whether their current loan has a fixed or variable rate.

    • myrna_minkoff says:

      I thought we had missed the boat…this news makes me ecstatic.

  2. c!tizen says:

    SWEEEEET, well not sweet, but I’m getting ready to buy a house and this is good news for me. Not so much sweet for those without work.

    I spent 8 months job hunting so I know how frustrating and scary it can be.

  3. dolemite says:

    Yeah, I refinanced 2 years ago at like 6%, then again at 5.25% (yeah, it did cost an arm and a leg to refi 2x in about a year). I figured rates would never get down below 5%, but here we are. Oh well! I think I’ll just focus on paying down bills than give my lender another 3k.

  4. ElleAnn says:

    Yippie! We’re going to run right out and buy a house. Oh wait- I have a temp job and my husband’s company never pays him on time. Nevermind.

  5. FatLynn says:

    Just called my loan officer :-)

  6. aloria says:

    Boo. I only bought my digs about 2 years ago. I don’t think I could refi without severely paying out the ass.

    • sufreak says:

      Wells fargo does a no cost refi, usually for a small % increase. So not no cost, but you dont do closing costs, etc. Just a thick packet of forms.

  7. Grogey says:

    The rates are so low I want to get a house now myself but damned if my paycheck doesn’t let me.

  8. LMacConn says:

    Woot. Now if only house prices would drop to more reasonable levels, I might buy.

    • evnmorlo says:

      Won’t happen until rates go up. There is always going to be an idiot who will pay the largest mortgage payment he can afford. Or can’t afford, for that matter.

  9. zigziggityzoo says:

    Just refinanced our house at 4.75% for 30 years just last month. Maybe I should have held off a bit longer…

  10. Velifer says:

    Who has enough equity to be able to refinance these days?

    • Nigerian prince looking for business partner says:

      Those of us who put down large down payments, have owned for several years, and/or purchased homes in less-than-up-and-coming neighborhoods or cities.

      • dolemite says:

        Or just paid a normal price for a house that they can afford. My realtor kept trying to push me to a bigger and better house when I was first time home shopping, since I qualified for a $130k+ mortgage, but I ended up buying a small foreclosed home for 1/2 of that.

        • FatLynn says:

          Yup, I spent about 175 when I could have qualified for around 300.

          • Nigerian prince looking for business partner says:

            The same thing happened with us. We were pre-approved for around $350k but wound up buying a house for less than $100k. It was a pain to get the mortgage officer to write up our pre-approval for a lower amount when we made our offer for.

            • talonscar says:

              pre-approved for 450k.
              bought a house I could barely afford for 250k.
              just re-assessed for 150k.


      • myrna_minkoff says:

        Don’t you love how everyone assumes no one in the past 10 years put down more than 3% as a down payment?

        • Nigerian prince looking for business partner says:

          It would be interesting to see the actual statistics on this. I know very few people who put down a 20% down payment on their homes in the past 10 years. Most went the VA, 80/10/10, 80/20 or PMI route.

        • Magspie says:

          My close friends put down 20% when they bought their house 6 years ago. It has dropped 50% in value. They may be making different assumptions than the one you’re assuming.

      • Evil_Otto would rather pay taxes than make someone else rich says:

        I’d have bought a house in a less-than-up-and-coming city or neighborhood.. except I’d have to find a new job once I moved there.

        Sure, houses are cheap in some places, because NOBODY IN THEIR RIGHT MIND WANTS TO LIVE THERE.

        • Nigerian prince looking for business partner says:

          Sure, houses are cheap in some places, because NOBODY IN THEIR RIGHT MIND WANTS TO LIVE THERE.

          Life is all about compromises. There are many parts of the country where you can get nice homes in the $90-$120k range. I lived in Capitol Hill for several years, where I paid over $2k/month to rent a very small row house. I could never afford to buy in the neighborhood and couldn’t see spending close to $30k/year just in rent and didn’t want to live the commuter lifestyle by moving somewhere I could afford to buy.

          So, we packed up and moved “out west” and now own a very nice, 100 year old home in a beautiful neighborhood. I took a big hit on salary but still come out in the end, with a $460/month mortgage for a home that will be paid off well before retirement.

    • chaesar says:

      people who bought their houses 10+ years ago

    • Elginista says:

      That was my fear, but I found out that loans backed by Fannie Mae (about 1/3 of all mortgages nationwide) are eligible for a program called Refi Plus (and DU Refi Plus) https://www.efanniemae.com/sf/mha/mharefi/.

      I had been told several times over the last couple years that I couldn’t refi because I didn’t have enough equity – the 20% I had put down four years ago had vanished. But I heard about the program from a friend, called a couple mortgage brokers, and found out I am indeed eligible for this since my loan is backed by Fannie Mae. I had a traditional 30 year mortgage at 6.125%, so the savings are definitely worth it. There’s a lot of documentation required, but nothing that they shouldn’t have asked for in the first place.

      I just locked in a 4.75% rate and should close within the next couple weeks.

  11. freelunch says:

    I think we should hold out for the 0.1% mortgage rates.

  12. coren says:

    Yeah I’m not shocked – all those commercials that make sure to mention TILA and emphasize truth keep telling me that if I don’t buy buy buy right NOW, I’m gonna miss out. That alone tells me that waiting to see what happens is my best move.

    How much up/down swing do these rates usually see on a week to week basis?

  13. Sian says:

    Getting ready to buy my first house now.

    Sadly this isn’t all great. when interest rates start to climb back up, home prices will take a hit. THAT is the time to buy.

    But now certainly isn’t the worst time in the world to go about it.

    • Nigerian prince looking for business partner says:

      It’s all about how long you plan on staying in the house. If it’s 10+ years, then the home prices will eventually rebound and a 4.57% rate will look almost free when interest rates eventually shoot up in the next few years.

  14. sufreak says:

    Refi, here I come. I did it once before from 6.25 to 5.75. Missed the boat on the 5.25…was regretting it. But hello!

  15. talonscar says:

    Current mortgage: 30 year fixed at 5.375. We’re in our 5th year.
    Worth refinancing?
    Is the 500$ Closing Cost deal from eastwestmortgage real or a con? http://www.eastwestmortgage.com/close_mortgage_500_closing_cost.html

    Thanks. 8)

  16. NotEd says:

    We would refi if we could afford the fee. Unfortunately the IRS took back most of our new homebuyer’s credit after auditing our return so we have no way of doing that right now.

  17. Erika'sPowerMinute says:

    Ah nuts–just moved into the new pad a week ago today; I thought we scored when the rate dropped two days before closing, and we adjusted down to 4.625% with .25 discount points. Now our credit union’s website shows 4.375% with .25 points. Oh well, I never would have believed we’d be under five, so we’re lucky. And we were fortunate enough to be able to put down 21%, so we’re in a good situation, mortgage-wise—we just can’t move anytime in the next few years, or until the market recovers……

  18. theblackdog says:

    If I had enough of a down payment (or moved to a much lower cost of living area) then I would be trying to jump on buying a house.

    I did see a house I really liked and ran my current numbers through a mortgage calculator, I’m not ready yet.

  19. TexasP says:

    Don’t rush. Interest rates are not going up anytime soon… and certainly not before the midterm election.

  20. asturgisvt says:

    I hate our monetary policy. We’ve been brainwashed to buy houses, and low interest rates seem oh so attractive to many people. I have a few questions though… how much will the same house cost in 5-8 years when interest rates peak (as they did in the early 1980s)? My guess is a lot less… but then again, perhaps you will have missed the boat on your “ideal” house if you don’t act before someone else. Wages… will they go up or down from here… will we see deflation or hyperinflation? With our current government at work, I can’t help but believe that the dollar will continue to be devalued; hyperinflation lurks.

    I only hope that I can refrain from buying another house without paying cash only. And I also hope that the rest of our American citizens wake up and realize that buying a house and borrowing money for 30 years is just like buying one house for the price of two.