Let's MM it up. Mortgage rates hit record low

[theintended]

From CNN Money today:

Another record low for mortgage rates

NEW YORK (CNNMoney) -- Mortgage interest rates hit new lows this week as both the 30-year and the 15-year fixed-rates fell, according to a weekly survey by Freddie Mac. It was the second consecutive week that rates broke records.

The 30-year, the most popular mortgage product, fell by 0.01 percentage points to 3.83%. Last year at this time, it stood at 4.63%. The new lows can save borrowers $46 a month for every $100,000 borrowed. Over a 30-year term that comes to more than $16,000.

The 15-year fixed dropped by 0.02 percentage points to 3.03%, lowering borrowing costs to $692 a month for every $100,000 borrowed, a $38 savings compared with a year earlier. Borrowers would pay out only $24,565 in interest over the life of the loan.

Rates are tracking the downward trend in Treasury yields, according to Frank Nothaft, Freddie's chief economist, which have fallen in response to election results in Europe and a weaker than expected U.S. employment report.

"The economy added just 115,000 jobs, below the market consensus forecast and less than in March," he said. "And although the unemployment rate declined, it reflected fewer people actively seeking jobs."
Mortgage payments at lowest leevel in decades

Mortgage rates will likely not fall much further, according to Bob Walters, the chief economist for Quicken Loans. The low rates have sparked refinancings, which have accounted for upwards of 70% of all mortgage applications lately.

That flood of refinancings strain the capacities of mortgage lenders, especially since many have exited the industry over the past few years. When the remaining banks have trouble handling all the applications, they raise rates to discourage any more.
6 ways to get a great mortgage deal

That means that when Treasury yields rise again, mortgage rates will follow at a slower rate, said Walters. Fewer homeowners will seek to refinance their loans and the banks will be better able to handle the lower number of applications.

"The spread between yields and rates will reduce when capacity comes into line," he said.

What rates have you gotten lately, MM?

[Pom]

I don't know if we are going to land at 3.75 or 3.875. I need to call our lender again.

[Deleted]

this makes me want to buy now even though its not the right time for us...

[y4m]

The fed has pretty much said they will stay low into 2014 at least. We have time, future buyers!

[Deleted]

We closed our refi last week at 3.875%. We came out way ahead too. Didn't have to pay 5/1 mortgage, but got 2 months principle knocked off from closing costs credit and $500 cash.

[Deleted]

2014 would be an awesome time to buy. wheeee

[karinothing]

May 10, 2012 14:06:10 GMT -5 @iheartcosmos said:

this makes me want to buy now even though its not the right time for us...

This is what I am thinking. Maybe DH and I really need to move forward on buying. Those rate are so great...

We would take a hit on breaking our lease though.

[karinothing]

May 10, 2012 14:07:49 GMT -5 y4m said:

The fed has pretty much said they will stay low into 2014 at least. We have time, future buyers!

But it could go up beyond 3.8% right? I don't really know how that works. . .

[Girls Own Love]

DH and I were just told 3.75% for an FHA. We close end of the month.

[adlove]

May 10, 2012 14:07:58 GMT -5 chilerellanos said:

I'd love to buy now simply because of these mortgage rates. However, we need to wait! Damn damn, fuckity fuck.

Ugh same! If we were in the states now we'd be buying, but hopefully the trend continues and we get a good rate when we move back next year.

[dr.girlfriend]

I just called today to try to refinance to a 15-year. We started in 2008 with a 30-year at 6.375% and refinanced in 2009 to a 30-year at 4.875. If I can get 3% it only adds $350 a month or so to my payment, and we'll be done with it by the time the kiddo is in college. Whee! Some quotes on bankrate are saying 2.875% with $0 fees and 0 points, not sure if Wells Fargo will match that or not.

[countthestars]

Our construction and land loan is going to be locked for 1 year at 3.125%

We will have to roll into a traditional mortgage after that.

[aerowife2010]

Maybe now we'll actually be able to refinance (please oh please!)

[ejpint]

I hope they hold until 2014...we could be ready to move by then! It doesn't really make sense for us to refi since we don't plan to be in our house that much longer...

[roadhead]

Of course we locked in 3 weeks ago for a 15 year rate...

[80sjunkie]

I'd love to refi but our values are way low. Then again, I'm at 4.5% so it isn't terrible.

[lmb5109]

We hope to buy again in early 2014. We'd have $40k to put down by then. I kind of like renting now and not having to worry about how much every noise on an appliance is going to cost us.

[madladybride]

I'd love to refi, too, but we have an FHA loan and I'm not sure we have the 20% equity. We bought last year for below market value, but values have gone down a bit. I should probably contact a lender and ask...

[Beeps (WOT?*)]

We refinanced at 5.25 under HARP1.0. I just called our lender and we'd have to bring too much $$ to the table to refi without PMI (about $75K-plus according to my credit union) and we can't refi under HARP because we already did per our mortgage broker (which I knew but I wanted to make sure I knew. Dammit, I was right.) But they're talking about changes to HARP3.0 and he'll call me if things change.

And that is my fuck fuck fuckity fuck of the day. I was hesitant but rates started climbing at the time. I never imagined them under 4%. Fuck fuck fuckity fuck.

They're building and selling like crazy around me so that should hopefully bring my house values back in line somewhat. Hopefully we'll have this damn thing paid off in the next ten years. Or sold.

[jennysmitten]

We are looking at purchasing a new home and our lender came back with 3.875%, I almost flipped. Our last mortgage had a 5.5% interest.

[smiles4ya]

I refinanced at 30 year 3.75%

A 15 was 3.25

[kaiene]

We are looking into refinancing and I think DH said the rate would be 3.75 or something like that.

[hamster]

May 10, 2012 14:14:28 GMT -5 countthestars said:

Our construction and land loan is going to be locked for 1 year at 3.125%

We will have to roll into a traditional mortgage after that.

Holy crap. I thought those were typically way higher...around 7 or 8%. We may have done things differently if we could have gotten that kind of rate.
::shakes fist at run down house::

[bunch]

Man oh man.

Has anyone done a refi with legitimately no closing costs?

[barefootcontessa]

May 10, 2012 14:14:28 GMT -5 countthestars said:

Our construction and land loan is going to be locked for 1 year at 3.125%

We will have to roll into a traditional mortgage after that.

Can you please share the name of the lender? We were just quotes 4.25% for construction loan (and hefty closing costs).

[hanihani]

I get irrationally mad every time I see a new article like this. I would love to refi in to a 15 year loan, but our equity just isn't there.....we're at like 85% LTV....even with our house losing 20% of it's value since we bought it. We even paid for a stupid appraisal earlier this year.

[Roc A Bee]

We are currently at 4.875. Maybe it is time I look into a refi.

[rex]

This makes me really wish we had plans to buy any time soon.

But since the economy is not predictable, we could be in another mess by the time we're ready. I hope not, but I wouldn't mind some low rates.

[tripleshot]

We locked in a construction to permanent loan a couple weeks ago at 4.0. I was bummed it wasn't 3.75 like we were told in February.

I was a MM lurker. I'll try to post more here since it works better with my iPhone.

[keh2oblue]

Yay...our HARP2 refi is currently in the queue, so hopefully we land on the lowest rate.