Mortgage Interest Rates Plunge

According to, home mortgage rates dropped to their lowest level in 17 months.  The 30-year mortgage is at 4.04% and a 15-year mortgage is at 3.41%.  Rates on 30-year jumbo loans also fell to 4.10%.  This is great news if you’re considering buying a home and should serve as a reminder to check your current mortgage to be sure your rate is competitive with these rates.

Why is this happening? 

Dropping interest rates reflect investor’s concern that we may be facing a slow-down or recession in our economy.  Further driving fears is the trade war with China and, potentially, Mexico.

What this means to you

For a 30-year fixed mortgage, you’ll pay $479.72 for every $100,000 you borrow, before taxes and insurance.  On a 15-year mortgage, you’ll pay $710.47 per month before taxes and insurance.

What to do now?

  1. Take a moment and compare your current mortgage rate to these rates. If it’s higher by more than 1%, do the math on the advisability of refinancing.  Determine your breakeven point including closing costs and decide if it’s worth it to refinance.

If you’re thinking of buying your first home, or a new home, now’s a good time to make your move.  I suspect that rates will be higher in the next six to twelve months.