Mortgage rates fall below 3 percent for first time

Houston Chronicle ^ | July 16 2020 | RA Schuetz

[rintintin]

The average rate for a 30-year-fixed mortgage fell below 3 percent last week for the first time, according to the government-sponsored mortgage-finance company Freddie Mac.

The falling rates are making homes more affordable for buyers and spurring a wave of refinancing as homeowners seek to lower monthly payments. Freddie Mac estimates that at current rates, most homeowners with mortgages could save money by refinancing — a financial boon for potentially tens of millions during a recession.

[ConservativeMind]

I saw two 2.77% APR choices on Nerdwallet this week.

[JoSixChip]

Try finding a CD that pays more then a savings account.

[preacher]

l8r

[Hardastarboard]

I have to wonder where all this money is coming from. The US just spent $3 trillion on “stimulus”, which is undoubtedly borrowed money.

[kearnyirish2]

I wonder how many people are left that really benefit from this, as many people who bought within the past few years already have low rates while many people who bought years ago wouldn’t be looking for a new 30 year loan.

I guess it is great for new homebuyers, if they exist in this Third World economy we’ve been reduced to.

[trebb]

A tad over a year ago, we bought with a 4.65% rate - working on a re-fi at 3.1% which will save about $75 a month on a 100K loan.

It can make a decent difference and be worthwhile for anyone with current rates over 4%.

[kearnyirish2]

I’m glad that worked out.

I refinanced a few years back (didn’t get the best rate, but worked it out so it was truly “free” - got a better - not the best - rate but paid $0 to do it).

At this point another 30 year loan would have me working past 70 to pay it off; a 15- or 20- year, maybe; not a 30 year.

[trebb]

We're just rolling the fees and the new escrow into the loan and will get an escrow refund from the old account 30 days after we close....wife is 70 and I'm 68 so we won't pay off the 30 year loan - grand-kids can sell it and make a handy profit because it's currently worth 2-1/2 times the loan (sold a house with a lot of land and put a big chunk down - which made it easy for bank to grant the first loan).

Wife was talking about making extra payments to pay it down and I told her that at our age, we need to enjoy the money we have and too bad if it lessens what the grand-kids get after we're gone - they will still get something worth getting.

[kearnyirish2]

That makes sense; we didn’t do a “cash-out refi”, just lowered the rate (I didn’t want a larger loan).

[CapnJack]

I have to wonder where all this money is coming from. The US just spent $3 trillion on “stimulus”, which is undoubtedly borrowed money.

Come on! Don't you know they have these things planted all around Washington DC!

[Mathews]

Closed at 2.75 just yesterday!!

[DCBryan1]

Wow...we are at 3.875. After a 1 point drop, time to refinance!

[Hot Tabasco]

I remember back in the carter years when rates were in the double digits. Eventually they dropped to 9.75 and a friend who was a real estate agent at the time told me we would never see rates that low again............LOL!

[ConservativeMind]

The money from the budget is borrowed from the future.

The money from the FED loans and QE is from our current billfolds, because it was directly inflationary (reduced the value of each dollar already in use).

[trebb]

My costs were under $4500 and I’ll get the old escrow refund - didn’t add much to the loan - maybe $5 a month and still saving $75 when the dust settles. We owned our last place outright so used the sale to reduce the mortgage on this one.

[kearnyirish2]

Nice.

My problem is that lower payments weren’t worth a longer loan.

[Labyrinthos]

The average rate for a 30-year-fixed mortgage fell below 3 percent last week for the first time...

For the first time? Then how did I refinance in December 20212 for 2.875%? Once again, FAKE NEWS.

[trebb]

Understood - always a balancing act...sometimes “saving” isn’t really...

[kearnyirish2]

Sure; if I was younger I wouldn’t care, but when you’ll reach retirement within 20 years a 30 year mortgage isn’t what I’m looking for.