Record Low Mortgage Rates Fuel Refinance Mortgage Applications

Record low mortgage rates today fueled refinance mortgage applications in the Mortgage Bankers Association's weekly mortgage survey. Current 15 year refinance rates today hit an all-time record low of 3.07 percent, the lowest point ever in the survey. Today's mortgage rates in Freddie Mac's weekly mortgage survey are even lower this past week averaging 2.83 percent.

Current refinance rates hitting record lows has enticed homeowners into refinancing their mortgage loan. In fact, the percentage of refinance applications now makes up 81 percent of all mortgage application volume. With record low refi rates homeowners who refinanced in the past year are refinancing again taking advantage of record low morgageĀ rates.

I refinanced twice in the past 2 years. The first time I refinanced to a 30 year mortgage rate of 5.25 percent just about 2 year ago. I recently did another refi to a 15 year refinance rate of 3.375 percent. I was able to afford the higher mortgage payments with a 15 year loan since 15 year refi rates are so low.

Although record breaking low refinancing rates has created a boom in refinance demand for those who are in a position to refinance. Unfortunately record low mortgage rates hasn't help the demand for homes as an uncertain economy has kept potential home buyers on the sidelines.

Average 30 year mortgage rates in the MBA's survey were at 3.74 percent, unchanged from the prior week's average 30 year mortgage rate. Mortgage rates today on 30 year loans tied an all-time record low set last week.

30 year jumbo mortgage rates currently are averaging 3.99 percent. 30 year jumbo rates are higher from the previous week's average 30 year jumbo rate of 3.98 percent. Jumbo rates ticked up 1 basis points but are still incredibly low right now. If you're willing to pay mortgage points you can find lenders offering 30 year jumbo refinance rates below 4.00 percent.

FHA mortgage rates hit a record low in this week's survey. Today's FHA mortgage rates averaged 3.52 percent, down from the previous week's record low FHA mortgage rate of 3.55 percent.

If you're a first time home buyer FHA backed mortgages allow you to put as little as 3.5 percent down on a home. If you're looking to refinance but can't because you don't have the required 20 percent equity in your home refinancing to an FHA mortgage will let you refinance almost up to 100 percent of the value of the home.
Author: Brian McKay
July 25th, 2012
Posted in: Mortgage Rates