Falling mortgage rates could mean it's time to consider refinancing—again.
Mortgage rates have continued to decline in recent weeks, spurring mortgage applications. For the week ending Tuesday, the average rate for a conforming 30-year, fixed-rate mortgage was 3.71 percent, down from 3.74 a week ago and 3.96 at the start of the year, according to mortgage data site HSH.com. Rates for a conforming 5/1 adjustable-rate mortgage averaged 3.01 percent, down from 3.17 percent at the beginning of 2015.
"Rates are not only lower than they were expected to be when we closed out 2014, but in recent days have dropped further," said Keith Gumbinger, vice president at HSH.com. The break for homeowners comes from investor concerns about falling oil prices and deflation, he said. That has pushed bond yields lower, allowing mortgage interest rates to slip.
In early January, 10-year Treasurys fell below 2 percent for the first time since October, hitting the lowest level since May 2013. That same day, according to Zillow Mortgages, average rates for a 30-year mortgage dropped six basis points, to 3.57 percent. Rates have remained low since. On Friday, they reported, the average rate was 3.57 percent, up from 3.54 percent a day earlier.
"From a timing standpoint, now's the time to jump on it," said Greg McBride, chief financial analyst for Bankrate.com. "For anyone who has purchased a home in the past year and a half, these are some of the best rates they've ever seen."
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