It keeps happening, over and over. Mortgage rates hit another record low in Bankrate's weekly survey, falling to 4.71 percent. The previous record low was 4.74 percent, set July 7 and repeated July 21. For July, the 30-year fixed averaged 4.74 percent.
I was talking to a mortgage guy yesterday who expressed amazement that rates have remained so low. Usually, he said, mortgage rates dip and then bounce back. But look what happened. Before July, the 30-year fixed hadn't been below 4.75 percent since around 1956; now the average for this month is below that.
In last week's Rate Trend Index, I predicted that rates would remain about the same, which we define as plus or minus 2 basis points. The 30-year fixed fell 3 basis points, so by the terms of the RTI, I got it wrong. By that standard, I've guessed correctly just 16 times in the last 52 tries.
In this week's RTI, I side with the majority who believe that rates will remain relatively unchanged over the next week. Because I voted that way, be sure to lock now.
I read with frustration Holden Lewis' REAL ESTATE WATCH article in my Sunday paper, "There are good reasons to refinance" about record lows. Reason for my frustration is that I have been trying for months to refinance my home in order to lower my payments via lower interest. I have never missed a payment and have an excellent credit rating, but I am retired and my debt to income ratio is too high. Apparently there are no programs either government or otherwise for which I can qualify for refinancing. Is there any help out there for folks like me?