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YAHL (yet another historic low) for mortgage rates

By Holden Lewis ·
Thursday, July 1, 2010
Posted: 12 pm ET

Mortgage rates hit another historic low this week. In Bankrate's weekly survey, the 30-year fixed fell to 4.75 percent. If you want to know what this has to do with a certain ice-blonde movie star, you'll have to read the article.

In this week's Rate Trend Index, a plurality of our mortgage experts predict that rates will rise over the next week. I voted "up," too. That's good news for mortgage borrowers, because only 19 of my last 52 RTI predictions have been correct, for a batting average of .365. That's an invitation for the haters to write comments.

So far today, there's little to no change in mortgage rates.

In Bankrate's survey, the average rate for the 30-year fixed in the second quarter was 5.03 percent. It averaged 5.25 percent in April, 5.02 percent in May and 4.85 percent in June.

Check mortgage rates in your area.

And follow me on Twitter @HoldenL. Then tell your friends that you follow a dude who's, like, really into mortgages. Photograph the expressions on their faces as you tell them this.

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Holden Lewis
July 07, 2010 at 11:01 am

Monica, your average lender is bummed when a loan doesn't go through because of a low appraisal. Right now lenders are making a bundle when they sell loans to Fannie and Freddie, and they collect hefty fees, too. When lenders find a dependable borrower, they're eager to close a loan.

Michael Becker
July 07, 2010 at 9:57 am

When refinancing a home the value of that home is determined by an appraisal based on the comparable sales approach. Appraisers look for sales of homes that are similar to the subject property. If the sales prices of those similar homes has dropped then the market value of your home has also dropped. I don't think lenders are taking advantage of a bad housing market by appraising a house for much less than it is worth. In fact appraisers are supposed to independant of lenders. If the loan amount of your new loan is below 80% of the newly appraised value of your home, then you will be able to drop PMI. If not you may still be able to save money by refinancing utilizing the HARP program if your loan is held by Fannie or Freddie. Good luck with your appraisal and your refinance.

July 06, 2010 at 7:38 pm

I'm trying to take advantage of the low interest rate on mortgages and have had my home for 5 years which means I can finally refinance at a lower interest rate and get rid of the PMI, right? I'm in the process of contacting other lenders (which is how I found this site), but I called the original lender from when I bought my house and I'm wondering if anyone else is coming across the same situation as me - lenders taking advantage of the "bad housing market" and appraising a house for much less then it is worth so the borrower will still have to pay the PMI. Right now it is just a suspicion - I will know more when my house is appraised by another lender...