Homeowners who need new budgeting methods in order to stay out of financial trouble may want to consider refinancing their mortgage payments, as the latest report from Zillow shows declines in the average rate for all mortgage types.
According to the Zillow Mortgage Rate Monitor, the average interest rate for 30-year fixed-rate mortgages fell by 0.02 percentage points – only one-third of its 0.06 point drop one week earlier – to 4.79 percent for the week ending February 16. While only a slight decline, it was enough to lower the long-term rate to its lowest point of 2010.
The average rate for 15-year FRMs followed suit, shedding 0.05 percentage points during the week to hit 4.22 percent. The average rate had seen an increase of 0.01 percentage points during the first full week of February.
For the second straight week, the average interest rate for 5/1 adjustable-rate mortgages recorded the most significant rate drop for the week as it fell 0.09 percentage points to 3.61 percent. Still, the decline could not match the 0.14 percentage point drop that had preceded it.
Colorado and Florida were found to have the lowest 30-year FRMs for the week, coming in at 4.71 and 4.75 percent respectively.