Mortgage Rates Dip Below 4% Again

By Sari R. Updated on 9/25/2013

The  average 30-year fixed-rate mortgage rates dropped again and fell below 4% on weaker housing and economic news. This is based on the Freddie Mac survey.  The average for the 30-year FRM was 3.99% for the week ending Thursday.  This is down from the prior week's average of 4.08%. In the same week in 2011, the 30-year FRM stood at 4.86%.  However economists actually project the reate to increase to 4.5% throughout the year because of the upcoming news in housing starts and also new home sales.

The 15-year fixed mortgage, also a popular refinancing program option , averaged 3.23% which was down from last week’s 3.30%. in 2011, the average for a 15-year FRM was hovering at 4.09%.

5-year ARM averaged 2.90%, down from 2.96% and 1-year averaged 2.78% and was also down from 2.84%.  In addition to these low rates, the government is trying to breathe life back into the housing market by introducing program such as the HARP 2 Program which will make refinancing possible for underwater mortgages.