Mortgage Rates Hit Record Lows

Earlier this month, the average rate on the 30-year fixed mortgage rate fell to 3.94%, which matches the all-time low hit earlier in October, according to Freddie Mac’s weekly mortgage rate survey, via CNNMoney. In addition, 15-year fixed-rate loans hit a new record low of 3.21%, surpassing the record that was also set in October. The CNNMoney article also states that five-year adjustable rate mortgages also hit a new low of 2.86%. The low rates that are available may translate into huge discounts for potential homebuyers. For example, on a 5% rate on a 15-year loan for $200,000, a homebuyer would have paid $1,582 a month, whereas is a borrower were to land a 3.2% mortgage on a home of the same price would come in $182 cheaper per month at $1,400. To view the CNNMoney article, click here.