30 year mortgage rates and 30 year refinance rates are just under 5.00 percent today. Interest rates have been low since the recession of 2008. A combination of programs designed by the Federal Reserve Open Market Committee to drive mortgage rates lower has worked.
Since the recession the Fed lowered the Fed funds rate of an all time low of zero percent. In addition to driving interest rates to record lows the Fed also has a program running that buys government bonds. This program is also successful at driving mortgage rates lower by driving bond yields lower.
Right now the current average 30 year mortgage rate reported by Freddie Mac is 4.87 percent. This rate isn’t to far from the record lows set in 2010. The record low was 4.17 percent set back on November 11, 2010. The record high back in 1982 was over 17 percent.
Although rates have gone higher in 2011 a 4.87 percent mortgage rate is low when compared to the record high or even the average 30 year mortgage rate a couple of years ago.
15 year mortgage rates and refinance rates are even lower than 30 year mortgage rates which is always the case. The current average 15 year mortgage rate is at 4.15 percent. The record low also set back in November 2010 was 3.57 percent.
5 year adjustable mortgage rates are averaging 3.72 percent this week. Back in November 2010 the record low 5 year adjustable mortgage rate was 3.25 percent.
1 year adjustable mortgage rates are averaging 3.23 percent this week. The record low for 1 year mortgage rates was 3.26 percent also set back in November of 2010.
The future direction of mortgage rates and mortgage refinancing rates will be higher in 2011. That being said, if you’re thinking about buying a home or refinancing now is a good time. When interest rates go higher your monthly mortgage payment will be higher and you won’t be able to afford as much of a home.