This was originally posted by Melissa Juarez this morning. Thanks so much Melissa for keeping everyone informed. Good news does a Friday good!!!
Wow! A plunge in mortgage rates is giving homeowners a rare opportunity to lock in a 15-year, fixed-rate loan for less than 4 percent.
Rates haven't dipped this low in decades. For those who can qualify, it's the chance to pay off a home in half the time while saving tens of thousands of dollars - if not more.
The average rate on the 15-year fixed loan dropped to 3.95 percent last week, according to mortgage company Freddie Mac. That's the lowest on records the company has kept since 1991. The average rate for a 30-year fixed loan fell to 4.49 percent. Rates haven't been that low since the 1950s, when longer-term mortgages typically lasted 20 to 25 years.
Applications to refinance loans rose 1.3 percent last week and those to purchase homes increased 1.5 percent, according to the Mortgage Bankers Association.