Consumers may not find a much better time consumers may find that now is the time for debt consolidation and refinancing, with long-term mortgage rates now at their lowest point of the year.
According to the latest Zillow Mortgage Rate Monitor released on Tuesday, the average interest rate for 30-year fixed-rate mortgages dropped 0.02 percentage points to 4.79 percent for the week ending February 16. The decline, while notable, was only one-third of the 0.06 percentage point decline seen the week before.
Similarly, the average rate for 15-year FRMs fell during the week as well, falling 0.05 percentage points to hit 4.22 percent. During the first full week of February, the average rate had actually increased by 0.01 percentage points.
For the second straight week, the average interest rate for 5/1 adjustable-rate mortgages saw the largest declines of the week, shedding 0.09 percentage points to 3.61 percent. One week earlier the average rate had dropped by 0.14 percentage points.
Oddly enough, while the rates for the week were ideal for mortgage refinancing, the volume of mortgage requests dropped by 6.7 percent over the course of the week. Also surprising was the slight drop in refinance loans, which dropped 2.6 percentage points to 31.9 percent of all mortgage applications. The drop in refinance applications was made up by purchases, which increased by 3 percentage points to 66.3 percent.