2015 Mortgage Rates December 7, 2015

2015 is coming to an end and mortgage rates are still defying Wall?Street predictions.?According to Freddie Mac’s weekly mortgage rate survey, 30-year?mortgage rates dropped 2 basis points (0.02%) last week, falling to?3.95 percent, on average, nationwide. ?Last week’s drop puts 30-year mortgage rates below four percent for?the 18th straight week. Experts had predicted rates would be closer to?4.50% by now.
As December begins, conventional rates are in the high-threes for?buyers paying points at closing; and purchase and refinance rates for?FHA and VA loans are as much as a quarter-point lower.?Because mortgage rates have dropped, today’s home buyers can
afford 7% “more home” as compared to the start of last year. If you?could afford a $400,000 home last year, this year, you can afford a?home for near $428,000.
But, it’s not just buyers of homes who are benefiting from today’s low?rates. Millions of U.S. homeowners are now in the money to refinance.?To be “in the money”, your mortgage rate must be more than 100 basis?points (1.0%) above today’s rates; and, your loan must have more than 10?years remaining with a balance larger than $50,000.?Refinance loan volume for certain loan types is now up more than 250%.?Even if you’ve already refinanced or recently purchased a home, take a?look at today’s low rates. There’s money to be saved and closing costs?don’t have to be high.