If you can qualify for a mortgage, it might be a pretty good time to buy a house or refinance an existing mortgage. Mortgage rates continue to fall and have hit another record low, according to Freddie Mac.
The nation's second largest mortgage finance company reports that in the last week, the average rate on all four mortgage types fell to the lowest level since it started keeping records in 1971.
Prospective homebuyers and refinancers can thank the stock market's lackluster performance this spring, which has contributed to a stronger Treasury bond performance. The more money flowing into bonds, the less the government has to pay in interest. Since mortgage rates are keyed to Treasury rates, mortgages have continued to become more affordable.
The 30-year fixed-rate mortgage averaged 4.49 percent for the week ended August 5, compared with the previous week's 4.54 percent average and 5.22 percent a year ago.
Rates on 15-year fixed-rate mortgages were even lower, 3.95 percent, versus 4.00 percent in the previous week and 4.63 percent a year earlier. It's also at a record low.
Five-year Treasury-indexed hybrid adjustable-rate mortgages dropped to an average 3.63 percent from the previous week's 3.76 percent and 4.73 percent a year earlier. One-year Treasury-indexed ARMs were 3.55 percent, down from 3.64 percent and 4.78 percent, respectively.
The record low rates were obtained with payment of anywhere from .06 to .07 of a point of pre-paid interest.
