30 Year Mortgage Rates Drop Below 3.5% Before Rising Above Record Lows

Average mortgage rates hit yet another record low the week of July 26th, but have since inched above the record setting levels. According to reports from mortgage financing company, Freddie Mac, mortgage rates for the week ending Thursday, July 26 dipped to 3.49 percent (0.7 points) for a conforming 30 year fixed rate loan on average. Rates for the previous week were 3.53 percent (0.7 percent), and for the week ending August 2nd they were a slightly higher 3.55 percent (0.7 points.)

Compared with a year ago, mortgage rates are a full point lower. Last year's average rate for a conforming 30 year fixed rate loan was 4.55 percent.

Rates on the increasingly popular 15 year fixed rate mortgage averaged 2.8% (0.7 points), down from 2.83% (0.6 points) the previous week and significantly lower than the 3.66% rate a year ago. 15 year rates also edged up on average the week of August 2nd, returning to the 2.83% (0.6 points) level reached 2 weeks earlier. These short term mortgage types are a popular choice for homeowners who wish to pay off their mortgage debt in half the time it takes for a traditional 30 year loan.

So if you're shopping around for a mortgage on your new home or looking at refinancing, don't be surprised to see some super competitive rates out there. Don't be afraid to shop around either, as the first low rate you come across may not necessarily be the best.

Sources:

Wall Street Journal http://blogs.wsj.com/developments/2012/07/26/here-we-go-again-mortgage-rate-drops-hits-3-49/

Freddie Mac
http://www.freddiemac.com/