Last week was a tough one in the financial markets following the debt rating downgrades. Nevertheless, the resulting decline in mortgage rates could mean significant savings for home buyers. The interest rate on a 30-year mortgage fell to 4.32% last week, down from 4.39% a week earlier, according to Freddie Mac’s Primary Mortgage Market Survey. The record low for a 30-year mortgage was 4.17% set last November.
Last week saw record-setting lows on 15-year fixed mortgages for the second week in a row, falling to 3.5%. Not surprisingly, refinancing activity has picked up in light of the lowered interest rates. On a $200,000, 30-year loan a borrower would save more than $29,000 on a 4.32% loan during the loan period compared to a 5% fixed mortgage.
At this writing rates have continued to fall, so be sure to check with your mortgage lender for the most current information and for assistance in deciding what is best for your personal situation.
If you have any questions, please don’t hesitate to contact me. As always, I am working to make your home buying and selling a rewarding experience.
Shawn Buryska, ABR, CRS, GRI
Coldwell Banker Realty
507-252-6745 – Direct
507-254-7425 – Mobile
507-252-6845 – Fax
Shawn Buryska, Coldwell Banker Realty, Licensed in the state of Minnesota