Mortgage Rates Continue Free-fall - 15 Year Below 4%

15-year Mortgage RatesAverage 30-year mortgage rates dropped again 11 basis points from 4.60% to 4.49% according to BestCashCow/Informa data. Mortgage rates peaked in 2010 at 5.20% in early April, meaning that anyone who got a mortgage at that time can refinance soon, if they haven't already. Fifteen year mortgage rates broke below 4% with the average at 3.94%. That's a 50 year low.

This is a boon to homebuyers as well as those looking to refinance their homes. The 10 year Treausury, which serves as a benchmark for 30 year mortgage rates, fell from 2.83% last week to 2.62% this week. Many economists are predicting that rates could fall to 2% or under. If that happens, rates on 30 year and 15 year mortgages would continue to drop. Fifteen-year mortgages could fall into the low 3% range. There's certainly no indication that rates will rise anytime soon.

Does that mean you shouldn't buy or refinance now? No. Rates are at record lows and if you have the opportunity to take advantage of them, do it.

What Does This Mean for Homebuyers?

I've been following actual rates, not just averages for a 30-year fixed rate loan in Massachusetts with 0 points ($200,000 loan) for the past four months. Two months ago the rate shot up to 5.125%. The best rate is now 4.250% with 0 points and $884 in fees.

I've heard anecdotally that lenders are tightening their lending standards up even further. If anyone has evidence of this, let us know. Leave a post below with your experience. Rates may be at record lows but that doesn't help if it's become extremely difficult for millions of Americans to get a purchase or refinance loan.

View mortgage rates by state and zip code.

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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