Due to shifts in global bond markets, the average interest rate on a 30-year fixed-rate mortgage was 3.49 percent on Monday, which is down from 4.2 percent a year ago. Therefore, it’s a good time to check the rate on your home mortgage because you might be able to save money from refinancing.
According to The New York Times, mortgage rates could even fall further in the upcoming weeks as banks begin to pass more of the savings from low rates in the bond market through to customers. Since refinancing makes sense when rates have fallen by a full percentage point, people who took out loans before 2010 or at the prevailing rates in 2013 and 2014 might see favorable economics for refinancing. Additionally, lower rates make it a good time for people to refinance if they want a different type of mortgage. In addition to talking with a mortgage broker or a banker, you can use this link to figure out whether refinancing might make sense in your situation. Unfortunately, as has always been the case, there is no way to know whether rates will pop back up or continue to drop.