WASHINGTON – The average rate for the 30-year mortgage fell this week to a 4%, almost matching a record low of a month ago, according to Freddie Mac.
The benchmark rate was 4.10% last week. It was a record 3.94% four weeks ago.
The average for the 15-year loan also fell towards new lows to 3.31%, from 3.38% last week. Its record low was 3.26% a month ago.
The low rates have caused a modest boom in refinancing, but that benefit might be wearing off. Most people who can afford to refinance have already locked in rates below 5%. Rates have been below 5% for all but two weeks in the past year. Just five years ago they were closer to 6.5%. Ten years ago they were above 8%.
ARM rates also moved lower, with the average for the five-year ARM dipping this week to 2.96%, from 3.08% last week; and the average for the one-year ARM declining to 2.88%, from 2.90%, the lowest on record dating to 1984.
