On August 18, 2011, FREDDIE MAC announced that the 30 year fixed mortgage interest rate averaged 4.15%(with 0 .7 points), down from 4.32% the previous week and breaking the previous low of 4.17% set on November 11, 2010. The 15 year fixed mortgage interest rate averaged 3.36%( with 0.6 points), as compared to 3.50% the previous week.
With mortgage interest rates at historic lows, not only is home ownership becoming even more affordable for home 
buyers, but now there is even more opportunity for current home owners to make the decision to refinance their current mortgage loan. Take a look at the benefit of just a .25% drop in the mortgage interest rate.
|
$200.000 Mortgage Loan Monthly Principal and Interest Payment |
||
|
4.25% |
|
4.5% |
|
$983.88 |
30 Year Loan |
$1,013.37 |
|
$1,504.56 |
15 Year Loan |
$1,1529.99 |
Want to calculate mortgage payments on your own? Here is a Mortgage Calculator for you to work with.
In selling real estate for 40 years now, I have not sold a home where interest rates are as low as they are now. I did just close on a sale Thursday where the buyers original mortgage application was for 4.75% and the loan closed with a mortgage interest rate of 4.375%.
Not only are there monthly mortgage payment savings for home buyers due to the low mortgage interest rates, but there are also huge savings in the purchase price of a home today compared to 2006. There is no denying that real estate values have dropped in the past few years, some towns and areas more than others. A lower purchase price equals a lower mortgage and a lower monthly mortgage payment.
Take a look at the year to year comparison of average sale prices for one family homes in Middlesex County, New Jersey.
Yes, there are substantial savings for home buyers with interest rates being at historic lows and real estate values reaching 2003 levels!
