A few weeks ago we reported that the latest flare up in the European debt crisis was causing mortgage interest rates (on both government-backed loans and conventional loans) to approach record lows. Since then the anxiety over Europe’s economy has deepened and the recent jobs report in the US was much worse than expected. Those developments have sent many global investors fleeing back to the safe haven of US treasuries. And that in turn has led to new record lows on mortgage rates in the last few days.
We are getting reports from several authorized lenders that borrowers with good credit have been getting FHA streamline loans at around 3.75% in the last week or so. Likewise borrowers with plenty of equity and good credit are getting conventional refinance loans through Fannie Mae and Freddie Mac in the high 3’s. Borrowers who are significantly underwater on their Fannie/Freddie loan and thus are participating in the HARP 2.0 program are still getting rates in the mid 4’s but that is still often saving hundreds of dollars per month.
Contact us in the sidebar right away for guidance on the best program for your situation. These record low interest rates are a temporary thing so the sooner you can get started and lock a rate in the better.