Mortgage rates took quite a tumble after the Federal Reserve cut the key rate to a range of 0% to 0.25%.
The 30 year fixed mortgage rate fell to its lowest point since Freddie Mac began its weekly mortgage rate survey 37 years ago. The rate fell 0.40 percent from last week to an average of 5.17 percent this week. Last year at this time the 30 year mortgage rate averaged 6.14 percent.
"Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, Freddie Mac chief economist. "The decline was supported by the Federal Reserve announcement on Dec. 16, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant."
The 15 year fixed mortgage rate also to a big leap down from last week’s average of 5.20 percent dropping to an average of 4.92 percent this week. This is the lowest level for the 15 year mortgage rate since April 1st of 2004.
The 5 year adjustable mortgage rate also fell this week by 0.22 percent to an average of 5.60 percent. Finally, the 1 year adjustable mortgage rate dropped from an average of 5.09 percent to an average of 4.94 percent to end the week.
Recent drop in mortgage rates have lead to a number of homeowners flooding lenders with mortgage applications over the past week. However, with credit standards still tight obtaining a conventional refinance may be tough and an alternate answer may be a loan modification or a short refinance.
See what the insiders are saying about mortgage rates and the mortgage market in general by visiting Future Planning Financial at www.fpf-direct.com.
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