The averages for 30-year, fixed-rate mortgages dropped to new lows this week, to 4.78 percent, more than a percentage point below what they were a year ago, according to Freddie Mac. This time last year 30-year fixed mortgages averaged 5.97 percent.
At the same time, averages for 15-year fixed-rate mortgages fell to 4.29 percent from 4.32 percent. According to Freddie Mac, the 15-year rate hasn’t been this low since 1991 when they started tracking it.
The five year ARMs averaged 4.18 percent, and one year ARMs averaged 4.35 percent.
Adjustable rate mortgages (ARM) made sense several years ago when the difference between an ARM and a fixed was larger, but today, unless someone has a very specific reason, a 30-year fixed mortgage probably makes more sense.
