Today brought another round of all-time low mortgage rates with no end in sight to the declines. Both mortgage rates and refinance rates today are at record lows after hitting record lows the previous week. Current mortgage rates today on 30 year mortgages are averaging 3.71 percent, down from yesterday’s average 30 year mortgage rate of 3.74 percent.
I just refinance my loan about 14 months ago, the interest rate on a 30 year loan I refinanced at was 5.15 percent. Now that 30 year rates are below 4.00 percent I’m thinking of refinancing again. I used a mortgage calculator and figured out with my loan amount if I get a refinance rate at 3.75 percent I can save $567.33 a month on my payments. Over the life of the loan my savings are over $100,000!
30 year rates made new lows the past 3 weeks but 15 year mortgage rates today are also at record lows and made record lows the past 6 weeks. Current 15 year mortgage interest rates are averaging 2.86 percent, down from yesterday’s average 15 year mortgage rate of 2.91 percent. Just last week 15 year mortgage rates broke 3.00 percent.
Today’s mortgage rates on adjustable home loans are also very low. Current interest rates on conforming 5 year mortgages are averaging 2.89 percent, down from yesterday’s average 5 year rate of 2.94 percent. 1 year rates are even lower today averaging 2.71 percent, a decline from yesterday’s average 1 year adjustable rate of 2.73 percent.
Just when you thought we hit the bottom on current mortgage rates we find rates have decreased yet again. Mortgage rates today on fixed conforming 30 year mortgage rates declined to a record low of 3.73 percent. 30 year rates today are lower than the Mortgage Banker Association’s average 30 year rate of 3.91 percent set on May 25th which is also a low. You can expect next week’s MBA survey to have even lower average rates.
30 year jumbo current mortgage rates averaged 4.23 percent in the survey, this is down from the May 18th average jumbo mortgage rate of 4.25 percent. There are many lenders offering 30 year jumbo mortgage rates under 4.00 percent.
Average 15 year mortgage rates declined for the week ending May 25th 2012,to 3.23 percent, this is also down from the May 18th record low of 3.26 percent. Today’s mortgage rates on 15 year loans are even lower averaging 3.02 percent. If you want to refinance and can you should do so, we might not see 15 year mortgage rates this low again in our lifetime!
30 year FHA loans are also lower at 3.70 percent for the end that ended on May 25th. This is down from another record low of 3.73 percent that was set on May 18th.
Last but not l
This past Thursday the long term outlook of the United State’s debt was lowered to negative from stable by the credit rating agency, Standard & Poor. This wasn’t a downgrade of the debt rating of the U.S. but rather the “Outlook” for the future.
S&P decided to lower their outlook on the county’s debt because as usual politicians in Washinton can’t decide on a budget for this year and future budgets. As a result the long term outlook on interest rates will be higher. Rates on mortgages, loans, and everything else.
So I believe the future outlook for conforming 30 year mortgage rates will be over 5.50 percent by the end of 2011. 30 year jumbo rates will be around 6.00 percent.
The longer term outlook for rates is even bleaker. You can except conforming 30 year rates to get as high as 7 percent to 8 percent or even higher if inflation