In July, the average 30-year fixed-rate
mortgage fell below 3% for the first me in
history.
1
And while many Americans have
rushed to take advantage of this
unprecedented opportunity, others queson
the hype. Are today’s rates truly a bargain?
While average mortgage rates have dried
between 4% and 5% in recent years, they
haven’t always been so low. When Freddie
Mac began tracking 30-year mortgage rates in
1971, the naonal average was 7.31%.
2
As
the inflaon rate started to rise in the
mid-1970s, mortgage rates surged and
eventually peaked at 18.63% in 1981.
3
By
comparison, today’s rates offer borrowers a
phenomenal deal!
Homeowners can capitalize on today’s
rock-bottom rates by refinancing their
mortgages. The following chart illustrates the
potential savings when you decrease your
mortgage rate by just one percentage point.
When it comes to refinancing, the bigger the
spread, the greater the savings.