Mortgage Rates Hit Record Low of 4.49%

The rate for fixed mortgages fell to a record low of 4.49%, based on an average 30-year mortgage. This is the lowest rate since 1971.

The average rate of a 30-year fixed-rate mortgage has dropped to 4.49 percent, from 4.54 percent last week, Freddie Mac said, as reported by sfgate.com. The rates were the lowest since Freddie Mac is keeping records and that is dating back to the year of 1971.

If you are considering to refinance your home, now is the time to finally do it. So far the statistic do not reflect any betterment in housing starts: In June 549,000 housing starts were reported, down 5.8% compared to last years same period. The new home sales improved a little to 333,000 in June, up from 267,000 in May.

The Mortgage Bankers Association (MBA) announced, that 78.0 percent of mortgage applications are coming from homeowners who want to refinance  their home loans. Most of the mortgage application are for fixed rate mortgages, which makes sense under these conditions.

Often times homeowners do not dare to do a refinance, as the fear that the appraisal might come out too low. But recently prices for real estate have been rising in certain markets already. So, there is surprise to the upside possible.