OK – this is just getting ridiculous already.
If last week’s mortgage rates were crazy low, this week’s mortgage rates would be classified as “unbelievably, astonishingly, insanely, stupid low.”
That’s right people – according to the Weekly Primary Mortgage Market Survey from Freddie Mac, mortgage rates yet again dropped to all-time record lows for the third consecutive week.
I’m this excited about mortgage rates being this low, simply because this is the best possible time for potential homebuyers – or homeowners looking to refinance into a lower rate – to finally make the call and start saving money.
Let’s take a gander at the numbers, shall we?
According to the national averages compiled by Freddic Mac last week, 30-year fixed-rate mortgages fell from 3.83 percent with 0.7 points last week to a new all-time low of 3.79 percent with 0.7 points in this week’s report. In the modern mortgage era, the 30-year fixed-rate mortgage has never seen a rate this low. Last year at this time, 30-year fixed-rate mortgages averaged a whopping 4.61 percent. Keep in mind, this is the national average from last week. Not the rate available today.
15-year fixed-rate mortgages fell to a new record low of 3.04 percent with 0.7 points from last week’s 3.05 percent with 0.7 points, which makes me think – could we possibly see a 15-year fixed-rate mortgage below 3.00 percent? One can only dream, I suppose, but it does seem like a strong possibility seeing that 15-year fixed-rate mortgages have dropped every week for the past five weeks. Last year at this time, 15-year fixed-rate mortgages averaged 3.80 percent.
ARMs, our often-overlooked friends, decided to go against the grain and climb up slightly. 5/1-year ARMs jumped to 2.83 percent with 0.6 points this week from last week’s 2.81 percent with 0.5 points, while 1-year ARMs climbed to 2.78 percent with 0.5 points from last week’s 2.73 percent with 0.5 points.
12 months ago, 5/1-year ARMs and 1-year ARMs averaged 3.48 percent and 3.15 percent, respectively.
If you’re new to the weekly PMMS report over here at the Quicken Loans Zing! Blog, now is my favorite time of the week: we get a special treat from our dear-pseudo friend Frank Nothaft, vice president and chief economist from Freddie Mac.
A couple weeks back, Frank somehow managed to contain his excitement when mortgage rates fell to record lows at the time. How would he do this week?
He explained, “The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week. For instance, Industrial production rose 1.1 percent in April – the largest gain since December 2010 – and consumer sentiment in May rose to its highest reading since January 2008, according to the University of Michigan.”
Mortgage rates eased for another week? C’mon, Frank! Jump up and click your heels together or something here!!
Anyway, as a wise man once told me, “Waiting to refinance or to lock in to a new mortgage will be a bigger mistake than snorting a line of wasabi.”
I don’t know if you’ve ever tried snorting wasabi, but you will regret it, so don’t regret missing out on these great rates!
