Mortgage Interest Rates Hit New Record Lows

According to Bankrate’s weekly national survey, the best interest rates for Mortgages have moved once again low enough to set some new records. Making home loans more affordable than ever for those who can qualify, the average interest rate on a 30-year fixed mortgage, according to the data, set a new record low of 3.87 percent. This low mortgage interest rate is based on an average discount and origination points of only 0.43.

To highlight the savings in monthly payments currently available at the current record low interest rates, Bankrate pointed out the difference in today compared to that of 2008, which was the last time mortgage rates were above 6 percent. Comparing a $200,000 home loan at 6.33 percent to the current low of 3.87 percent, results in monthly mortgage loan payments of $1241.86 versus the same amount today at only $939.90.

For those deciding on refinance or buying, the savings currently available make that appear to be a very sensible decision. While qualifying today is a bit more difficult than in 2008, many banks are eager to lend to home buyers.

Interest rates also hit record low numbers on other mortgage term loans as well. The average 15-year fixed mortgage rate fell to 3.13 percent, while the jumbo 30-year fixed mortgage ticked lower to 4.47 percent. While not as popular of an option among home buyers, adjustable mortgage rates were mixed, with the average 3/1 ARM rate inching higher to 3.07 percent while the rate on the popular 5/1 adjustable pulled back below the 3 percent threshold to a record low of 2.96 percent.