How low can mortgage rates go?
Mortgage rates posted their largest three-week decline in 20 years as economic worries mounted, Bankrate.com reported today.
The rate on a 30-year fixed-rate mortgage fell to 5.75 percent, down from 5.88 percent a week ago. Less than six months ago, the rate was a full percentage point higher, which would add an additional $130 a month on a $200,000 loan.
The rate on a 15-year fixed-rate mortgage fell to 5.28 percent, down from 5.45 percent, while the rate on a fix-year adjustable rate mortgage came in at 5.67 percent, down from 5.81 percent.
The rate decline has spurred increased interest in mortgages, according to the Mortgage Bankers Association. The group today said that mortgage applications jumped 28.4 percent last week.