There’s some good news for borrowers as we head into the holiday season. Interest rates on long-term mortgages have dropped to their lowest levels in two years, according to Freddie Mac, the federally chartered company that provides funding to retail mortgage lenders.
According to the recent results of the November 29 Primary Mortgage Market Survey®, 30-year fixed-rate mortgages averaged 6.10 percent with an average 0.5 point for the week ending November 29, 2007.
Not since October 2005, when the 30-year rate was 6.03 percent, have long-term mortgage rates been so low. In addition, current rates for 15-year fixed-rate mortgages averaged 5.73 percent (with an average 0.5 point), the lowest since the week ending January 26, 2006.
Rates on five-year hybrid adjustable-rate mortgages were also reported to be the lowest rate seen since January 2006. However, the one-year ARMs were up from the week prior and were relatively flat from this time last year.
The drop in long-term mortgage rates is welcome news for consumers looking for a mortgage or thinking about refinancing an existing loan.
"In today’s current housing market, the good news is that fixed rate mortgages come at a very attractive interest rate," said Jim Svinth, chief economist with LendingTree Loans. "Low rates and the security of a fixed monthly payment are tempting homeowners to look at all of their options, especially those who have an adjustable rate mortgage nearing a reset."