If last week’s momentary hiccup rise in interest rates didn’t spur you to rush out and lock in a rate, your laziness could pay off this week: Rates have come down again. The average for a 30-year fixed-rate mortgage fell to 4.51 percent, down from last week’s 4.60 percent. Last year at this time, the average was 4.57 percent.
The average for a 15-year fixed-rate mortgage also fell, from 3.75 percent last week to 3.65 percent this week. A year ago, it was 4.06 percent.
Frank Nothaft, vice president and chief economist of Freddie Mac, said the disappointing employment numbers and a lack of growth in employee wages contributed to the decline in interest rates. “These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term," he said in a news release.
With rates still bouncing along the bottom, refinancing makes sense for many borrowers – but not all, says mortgage specialist and Port Washington resident Alan Rosenbaum. “The only ones who should not refinance are those looking to sell their home in a year. Your closing costs would exceed your savings in that period of time,” he says.