Wells Fargo’s (NYSE: WFC)’s mortgage refinance rates have hit new all time lows during the last several consecutive days. The most recent interest rate for a 30 year fixed rate mortgage that has been published is below 4.49%, well below the weekly all time low average of 4.61%.
Last week’s data will likely be atypical because it was a holiday week and many of the bank’s branches were closed for several days or operating on partial schedules. If the results do not indicate that a new weekly all time low has been reached, it’s very likely that Wells Fargo’s mortgage interest rates will hit a new all time record low this week.
The 10 year treasury yield rate is below its 200 day moving average and there’s no indication that mortgage rates will bounce any time soon until the Federal Reserve begins to tighten its stimulus of the mortgage market.
Many borrowers will likely try to wait until mortgage rates hit an absolute all-time low. Unfortunately for them, it will be very difficult to determine this because the low rates that consumers are receiving now are historically unprecedented. Analysts don’t have much to base their predictions on to know when mortgage interest rates will reach their absolute lows.
Consumers that are paying interest rates above 5% on their mortgage might want to consider a refinance. It’s probably better to accept the lowest available interest rate today, because even if mortgage rates drop slightly lower, they are still at interest rates which are close to 40 year lows. By refinancing your mortgage, you could potentially save hundreds of dollars per month in interest that could be used to lower your mortgage’s principal balance.
