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3.87: Mortgage Rates Hit Another Record Low

by Shilpi Paul

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Mortgage rates dropped down to a new record low again this week.

This morning, Freddie Mac reported 3.87 percent with an average 0.8 point as the average on a 30-year fixed mortgage. After weeks of dropping, rates jumped up to 3.98 percent last week, but they have now been below 4 percent for nine consecutive weeks.

From Freddie Mac vice president and chief economist Frank Nothaft:

Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections. The Gross Domestic Product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3.0 percent, while consumer spending in December was flat.

We have been saying this frequently in past weeks, but it bears repeating: the rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate. Still, rates are at historical lows.

Here’s a look at the path of rates since last January:

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See other articles related to: mortgage rates, freddie mac

This article originally published at https://dc.urbanturf.com/articles/blog/3.87_another_record_low/5051

7 Comments

  1. Steve said at 4:40 pm on Thursday February 2, 2012:

    Unreal rates, So unreal that every time I have checked with Bank of America to refinence over the past 10 weeks the rate for REFINANCING has hardly moved at all.  Refinances are higher than what you post on here! At least thats what BOA tells me every time I send them your link with the big red numbers on ever dropping rates.  Maybe one of your next articles could explain why this is the case? Frustrated to not to be able to get much below 4.2% on a refi!!!!!  Help guide us Urbanturf of finding just as low rates on refinancing….......  Frustrated in DC!

  1. Steve said at 4:45 pm on Thursday February 2, 2012:

    Rates are so low they are unreal, actually they are not real for those of us who inquire on refinancing!  Over the past 10 weeks I continue to send the big bold numbers in red from UrbanTurf over to my lender (BOA). The rates they have for refinancing are always at least 0.30-0.50 higher than what you are publishing.  Help guide us UrbanTurf on what refinance rates are doing and how they are trending.  It seams like such a shell game with BOA.  The big number in red has decreased consitently for the past 10 weeks and the refi rates have not budged hardly at all. Why?????

    Frustrated on Barracks Row!

  1. Mark Wellborn said at 5:01 pm on Thursday February 2, 2012:

    Steve,

    We will look into this and plan on doing a refinancing story in the coming weeks.

    Have you explored other, smaller and perhaps local, lenders to see if they are offering better rates?

    Mark Wellborn
    Editor

  1. 13th st said at 5:49 pm on Thursday February 2, 2012:

    Steve,

    The rates are indeed this low, including refinances. The problem is your bank. I have BOA as well and their best refi offer was 4.25. I went with a smaller bank and locked in 3.875. Wells Fargo, BOA, etc will not be able to get you under 4 (too much overhead). Assuming of course you have 700+ FICO and some equity in your house

  1. H Street Landlord said at 8:10 pm on Thursday February 2, 2012:

    I thought these quotes normally include half a point or so?

  1. roots said at 1:26 am on Friday February 3, 2012:

    Usually those rock bottom rates include points. I’m guessing you (Steve) are getting rates with 0 points. I also went to BoA because I have been a customer for 15 years. They gave me a TERRIBLE rate (for my mortgage and refi) as did Suntrust (my originial loan was with them) when I went for my refi.

    Went with a smaller bank and got about .5% less. Check lendingtree or smaller banks.

  1. anon said at 1:35 pm on Friday February 3, 2012:

    I recently got a 4 on a 30yr fixed on a refi that will settle in 2 weeks (no points).  There are some modest transactional fees, but no interest paoints

Comments are closed.

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