Business & Tech
Mortgage Rates are at Historical Lows
Mortgage rates have fallen this past week to the lowest levels ever recorded by the Mortgage Banker's Association
Since 1990 the Mortgage Banker’s Association (MBA) has been keeping track of prevailing mortgage rates in the United States.
In data published July 15, 2020 to the group’s website – the MBA recorded the lowest average mortgage interest rates since their weekly surveys began in 1990.
In other words – mortgage rates are the lowest that have ever been officially recorded. That’s important news for anyone who either owns a home with a mortgage – or is thinking of purchasing a home with borrowed funds.
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According to the latest MBA weekly survey, average interest rates on a 30-year fixed-rate mortgage falling to just 3.19 percent - another record low in the history of MBA's survey. The average interest rate for a 15-year fixed-rate mortgage fell to just 2.70 percent.
Bill Gaffney is a Certified Mortgage Planning Specialist with Morningstar Mortgage. Mr. Gaffney has decades of experience in helping homebuyers secure mortgages for their properties and in helping existing homeowners to refinance their mortgages. Here’s what Bill Gaffney thinks of the current mortgage market, “With rates near historic lows, it is a great time to buy a home or refinance. Particularly 30-year fixed loans to guarantee affordable home payments for decades. But there are a few things to watch for. These great rates really apply to loans that can be guaranteed by the Federal government, and the pricing depends on a lot of factors. When you see an advertisement for an extremely low rate, you can be virtually certain that rate is for a perfect scenario. 40% down payment, 760+ FICO scores, Single family home, low debt to income ratio, etc. There are about 40 different main variables that determine your interest rate. Now almost any loan at $765,600 or less will be priced great, but the fine print can exclude a lot of people from the advertised rates.”
Find out what's happening in South Pasadenafor free with the latest updates from Patch.
You can also read commentary from Anthony Sarwary - a Branch Manager and lending expert with Secure Provision Mortgage Corporation on last week's mortgage rates here.
The bottom line for consumers is that mortgage interest rates have fallen to all time lows. If you are considering refinancing your current mortgage or borrowing funds to purchase a home – the time (and interest rates) have never been better.