With the economy continuing to face uncertain times due to the ongoing COVID-19 pandemic, mortgage lenders are offering borrowers historically low interest rates.
Mortgage rates today have been steady over the past week. The average rate for a 30-year fixed mortgage rate is currently at 2.73%, which is just slightly lower than the previous week's average rate of 2.76%. 5/1 adjustable-rate mortgages (ARMs) stand at an average rate of 2.91%, while 15-year fixed-rate mortgages come in at 2.22%.
Refinancing loan rates have also seen a slight drop this week. The average 30-year refinance rate dropped from 2.82% to 2.81%. Meanwhile, 15-year refinance rates have seen an even greater decrease, with a 0.03% decline to 2.31%.
Borrowers looking to lower their monthly payments or shorten their loan terms may benefit from taking advantage of today's low mortgage rates. Even small rate decreases can have a big impact on how much money borrowers save each month. With that in mind, borrowers should act quickly before rates start to rise again.
At the same time, it's important to understand the credit risks associated with taking out a mortgage or refinancing an existing loan. Borrowers should consult with a lender, financial advisor, or other professional to ensure they're making the most informed decision possible.
Mortgage and refinance rates remain near their all-time lows, as the economic fallout from the COVID-19 pandemic continues. Average 30-year fixed mortgage rates currently stand at 2.73%, a slight decrease from last week's average of 2.76%. 5/1 adjustable-rate mortgages (ARMs) come in at an average rate of 2.91%, while 15-year fixed-rate mortgages are at 2.22%. Refinancing loan rates have also seen a small drop this week, with 30-year refinance rates falling from 2.82% to 2.81%, and 15-year loans declining from 2.34% to 2.31%.
These record-low interest rates offer borrowers an opportunity to save money each month through lower monthly payments or reduced loan terms. However, before taking out a new mortgage or refinancing an existing one, borrowers should be aware of all the associated risks and ensure they are making an educated decision. Consulting with a lender, financial advisor, or other professional can help borrowers understand their options and make the best decision based on their individual situation.
For those who decide to take advantage of the current low interest rates, it is important to act fast before rates start to increase again. Doing so can potentially save borrowers thousands of dollars, depending on the amount borrowed and the length of the loan. Borrowers should also consider that, although low interest rates could help make loan repayments more manageable, the principal of the loan still needs to be repaid. Ultimately, the right move for any individual borrower depends largely on their personal circumstances.
This article was contributed on Nov 11, 2023