Mortgage Rates Slide To 4% For 30-Year

We had seen the mortgage rates coming down and staying steadily throughout last week at about 4.85 level. However, in an email, received by AmeriSave, I read that it is introducing a new low level of mortgage rate by making the 30-year mortgage available at stunning 4 percent level.

Today's Mortgage Rates from AmeriSave

March 31, 2009
Loans up to $417,000 Rate APR
30 Year Fixed 4.000 4.304
15 Year Fixed 4.000 4.407

Amerisave can afford to offer the 30-year mortgage rate at 4 percent because it does its business online, thus cutting its cost of operation. But I was amazed to see this article in today's Wall Street Joural that the builders cut mortgage rates below 4 percent.

"The latest sales promotion: Lennar Corp. is offering a fixed 3.625% rate over the life of a 30-year fixed rate mortgage. The deal is besting average rates that have fallen below 5% nationwide, but it comes as other builders are reporting mixed results from similar incentives.

Hovnanian Enterprises Inc.'s recent offer of a 3.99% rate sparked "underwhelming" interest from home buyers, says Dan Klinger, president of the builder's mortgage operation. Earlier this year, luxury builder Toll Brothers Inc. was offering a 3.99% interest rate in many of its developments nationwide, but today that rate is no longer available nationally."

I asked one fellow real estate broker how historical these low mortgage rates are and he told me that these are not historical at all, these are ALL TIME low mortgage rates.

There are two questions that need to be addressed and we welcome your comments.

1. Did you refinance too early?

2. Will The mortgage rates fall further below?