According to an article in the San Diego Union Tribune on June 25th, mortgage rates have dropped to record lows. Freddie Mac confirmed this with lenders offering 4.69% on a 30-year fixed-rate loan.
The average rate on the 30-year loan fell from 4.75$ last week, dropping below the previous record of 4.71% set in December. As recently as early April, the average was at 5.21%.
The latest move down had been expected after Treasury yields — which usually influence the direction of home-loan rates — fell this week to their lowest levels in more than a year.
Freddie Mac’s survey, which the mortgage giant has been conducting since 1971, asks lenders what rates they are offering — and the upfront fees required to obtain those rates — for well-qualified borrowers who have at least a 20% down payment for a home purchases or that much equity in a property being refinanced. Actual rates negotiated by solid borrowers are often slightly lower.
Upfront fees on 30-year fixed-rate mortgages this week averaged 0.7% of the amount borrowed.
Rates also hit record lows on 15-year fixed-rate mortgages and so-called 5-1 hybrids, which have a fixed rate for five years before turning adjustable for the remaining 25 years.
With these amazingly low interest rates, isn’t it time for you to consider buying a home? Contact Marilyn Dashe (marilyndashe@cox.net) at Sea Coast Exclusive Properties in Encinitas for some ideas.