How low can they go? Mortgage rates decreased sharply this past week, and Bankrate.com is reporting the national average 30-year fixed rate loan at just 3.40%, down 12 basis points from last week.
Each week, Bankrate surveys hundreds of mortgage bankers, brokers and industry experts to see if they believe that rates will increase, decrease, or remain the same. Interestingly, the majority (81%) of mortgage experts believe that rates will either remain the same or fall in the next week. In fact, some lenders are speculating that they’ll soon reach their lowest level ever.
The lowest mortgage rates on record occurred in November 2012 when they hit a historic low of 3.31%, according to government mortgage giant Freddie Mac.
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This drop in rates may lead to more and more homeowners scrambling to refinance their current homes. The most popular loan for refinancing, the 15-year fixed rate, remains low at just 2.76%. While the monthly payments on a 15-year loan are higher, homeowners will save thousands over the life of the loan because the rate is significantly lower.