Mortgage Rates crush it again, Plunge to a new All-time Low

Mortgage rates just keep sliding lower, hitting yet another new record low this week. The benchmark 30-year fixed-rate mortgage fell 8 basis points to 3.22 percent, according to Bankrate’s weekly survey of large lenders. That’s the lowest rate ever in more than three decades the survey has been conducted.

Some expert rate watchers see still lower mortgage rates ahead. “Rates should head lower as the 10-year Treasury now struggles to maintain a yield above 0.5 percent,” says Gordon Miller, owner, Miller Lending Group, LLC, Cary, North Carolina.

But those looking for a new mortgage or a refinanceshould be wary about grabbing the first low rate they see. One reason, says Miller, is closing costs. “The key moving forward for homeowners will be the amount of closing costs. A lot of pretty rates are being advertised, but an APR might be the worst way to alert a potential borrower of the costs involved. Averaging the costs over the term of 30 years makes it sound more attractive, but if the APR was calculated on the actual life of the loan itself then the rate could average out over 5 percent.”

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