Mortgage rates plunge to record lows

[Zorro]

Mortgage rates keep finding new lows as concerns about the U.S. economy’s recovery mount.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average sank to a record-low 3.13 percent with an average 0.8 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 3.21 percent a week ago and 3.84 percent a year ago.

The 30-year fixed rate is at its lowest recorded level since Freddie Mac began tracking mortgage rates in 1971. It surpassed the previous low of 3.15 percent set at the end of last month. This is the fourth time the 30-year fixed rate has fallen to a new low in the past couple of months.

Freddie Mac, the federally chartered mortgage investor, aggregates rates from 125 lenders across the country to come up with national average mortgage rates. It uses rates for borrowers with flawless credit scores. These rates are not available to every borrower.

The 15-year fixed-rate average fell to 2.58 percent with an average 0.8 point. It was 2.62 percent a week ago and 3.25 percent a year ago. The five-year adjustable-rate average slipped to 3.09 percent with an average 0.4 point. It was 3.10 percent a week ago and 3.48 percent a year ago.

https://www.washingtonpost.com/business/2020/06/18/mortgage-rates-plunge-record-lows/

Great news for buyers -- if those buyers have a secure and steady income.

[msongs]

1. shows what a scam the mortgage racket is...2/3 of your loan payout is interest AND they

they also charge points/fees up front.

[mr_lebowski]

4. If you get a 15 year one the % of each payment going to monthly interest is a lot lower

Obviously you have to be able to afford the higher payments, but it doesn't even come close to doubling your monthly payment cause a decent chunk of what you pay is 'fixed' anyways ... escrow, homeowners insurance, PMI (if applicable), and property taxes.

And if you refi to a much lower interest rate, the difference can actually be pretty small, like 30-40% more. And you're paid off in 1/2 the time.

[Johnny2X2X]

2. Good time to refinance

We did last year and got locked in at 3.50%, wouldn't be worth it to do it again for maybe 1 more point.

[mr_lebowski]

3. Cool, been thinking of refinancing for a while now ...

I heard Brokers are rejecting people just because demand for re-fi's can't be kept up with though so I've waited.

This is probably going to make the issue even worse though

[crickets]

5. K&R for visibility.

[helpisontheway]

6. We refinanced in FEB..3.5% Good but much better lately..😕nt