According to Freddie Mac’s weekly survey of more than 100 mortgage lenders, the 30-year fixed-rate mortgage rate dropped another 2 basis points (0.02%) this week, falling to an average of 3.79% nationwide. This has been the fourth consecutive week mortgage rates have fallen!
We now see mortgage rates at their lowest since October of last year making it quite possibly the best time to purchase or refinance a home.
Using Freddie Mac’s weekly survey, here is how monthly mortgage payments would fluctuate, considering a loan amount of $250,000.
- 30 year fixed rate: $1,163 per month
- 15 year fixed rate: $1,735 per month
- 5 year ARM: $1,040 per month
If you’re planning to buy a home soon and it’s likely that you will move or refinance within the next six to seven years, the 5-year ARM could be an excellent way to save on your mortgage.
How much lower will mortgage rates go?
Nobody has a corner on the crystal ball to make that prediction. What we do know is that rates are low right now.