McLEAN, Va. – Home loan rates fell further this week to record lows, spurring more refinancing activity.
Average rates on 30-year fixed mortgages slid to 4.78% this week, from 4.8% last week, according to Freddie Mac. Last year at this time, the average rate on a 30-year mortgage was 6.06%.
Frank Nothaft, chief economist for Freddie Mac, said the low rates means that those who refinance a $200,000 loan with a 30-year loan would save almost $212 in monthly mortgage payments and more than $2,500 per year.
The average for the 15-year, fixed-rate loan held steady at 4.48% for the third straight week.
Short-term rates moved lower too. The average for the five-year ARM declined to 4.80% this week, from 4.85% last week; while the average for the one-year ARM fell to 4.77%, from 4.82%.
