I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at mortgage rates.
Another week, and more record low mortgage rates. The record lows were seen across the product spectrum, encompassing both fixed and adjustable rate mortgages. The benchmark 30-year fixed mortgage rate dropped to 4.37 percent and the larger jumbo 30-year fixed rate tied a record low of 4.89 percent. The 15-year fixed rate mortgage that is popular for refinancing also hit a new low of 3.48 percent.
Many of the adjustable rate mortgages have initial interest rates so low they're bordering on the ridiculous. The average 5-year, 7-year, and 10-year adjustable all hit record lows. The average 5-year ARM is 3.07 percent, with some lenders at 2.5 percent or below. On the 7-year ARM - which offers a fixed rate for the first 7 years - the average rate is now 3.23 percent with a number of lenders below 3 percent. The 10-year adjustable is at 3.82 percent.
While these rates are plenty tempting for borrowers that don't imagine being in the home more than 10 years, some of these loans are now priced in such a way that rates can only go up in the future. Be very sure about your timetable or your ability to bank the savings in the meantime, as rising monthly payments would be a virtual certainty in later years.
Whether you're buying a home or refinancing your mortgage, its important to shop around for the best deal. To find the lowest mortgage rates in your area, be sure to go to Bankrate.com.
I'm Greg McBride.