From Bankrate.com (edited for clarity):
Rates on long-term mortgages dropped to their lowest level since April, this week.
In addition, fewer people are applying for home loans than at any time since May 2002, according to the Mortgage Bankers Association.
The benchmark 30-year fixed-rate mortgage fell to 6.65 percent, according to the Bankrate.com national survey of large lenders.
One year ago, the mortgage index was 5.91 percent. Four weeks ago, it was 6.91 percent, and it was 6.89 percent two weeks ago.
Good news for loan seekers.
Meanwhile, another interesting piece of news, also courtesy of Bankrate.com:
From April through June, 88 percent of Freddie Mac-owned loans that were refinanced resulted in new loans that were at least 5 percent higher than the old loan balances, according to Freddie. Those people were doing cash-out refinances.
Freddie Mac economist Amy Crews Cutts says a lot of people are using cash-out refinances to pay off the balances of their home equity lines of credit. That can result in lower monthly payments, because the average rate on a credit line is near the prime rate of 8.25 percent.
So, those that can are taking practical steps to reduce their exposure to rising interest rates.
Good to hear. That will protect them.
Three years ago, when we bought, we took out two loans – the first was a 4.65% five-year adjustable rate loan (whoa!), and the second loan was a 4.65% line of credit, that adjusted, monthly.
This time, when we bought, last month, we were much more cautious. Our first loan is a 6.45% fixed-rate loan, and the second loan is a 8.25% fixed-rate loan.
The higher rate on the second loan is kind of annoying, and I was suprised at the high interest rate. However, the advantage is that both loans are now fixed-rate, allowing for better long-term planning.
What, you didn’t want to know this stuff?
More information: Mortgage rates fall to 4-month low – By Holden Lewis, Bankrate.com