Wow! Mortgage rates at lowest point since the 1950's (our term for this --- "mid-century mortgage rates").
Bankrate.com reports that "The benchmark 30-year fixed-rate mortgage fell 10 basis points, to 5.19 percent ... One year ago, the mortgage index was 5.91 percent; four weeks ago, it was 5.45 percent."
So, what was the rate in the 1950's? "According to the National Bureau of Economic Research, the average rate on a 30-year, fixed-rate, FHA-insured mortgage was 5.15 percent in December 1956. That appears to be the last time that rates were lower."
So, we expect there will be more refinance activity, assuming the property and the borrower qualify for the refinance loan.
And, that's exactly what is happening ... "The Mortgage Bankers Association says home loan applications soared by more than 30 percent last week. Four-fifths of those applicants were homeowners who had loans and who wanted to refinance at lower rates."
But, be careful and pay attention! It is also reported that mortgage fees are on the rise. Read here: Mortgage Fees Highest Since 2000.
For more information about mortgage rates, read here: Bankrate.com