More Record Low Average Mortgage Rates This Week

Already low fixed mortgage rates have made yet another low today. Both 30 year and 15 year fixed mortgage interest rates hit another low in this week's Primary Mortgage Market Survey released be Freddie Mac. Mortgage rates are lower thanks to lower Treasury yields on concern about Greece's debt and the European Union.

The current average fixed 30 year mortgage rate fell to 3.79% with 0.7 mortgage points for the week ending May 17, 2012, down from the previous week's average 30 year mortgage rate of 3.83%. 15 year rates are averaging 3.04% with 0.7 mortgage points, down from last week's average of 3.05%.

Slight better U.S economic data including the highest consumer sentiment, higher industrial production and more housing starts were overshadowed by Greece failing to form a new government and concern about the debt deal reach between Greece and the European Union.

Average adjustable mortgage rates were slightly higher this week over last. 5 year adjustable mortgage rates are averaging 2.83% with 0.6 mortgage points, up from last week's average of 2.81%. 1 year adjustable mortgage interest rates are averaging 2.78% with 0.5 mortgage points, up from the prior week's average of 2.73%.

Low refinance rates are fueling demand for mortgages. The Mortgage Bankers Association said mortgage applications for refinancing increased 13 percent from the previous week.

Homeowners applying for mortgages to refinance a loan account for the majority of applications these days which isn't a surprise since rates are at record lows and home sales are still lower now then they were a few years ago.

The mortgage refinance share of applications increased to 74.9 percent of total applications, up from 72.1 percent the previous week. Refinance rates on 30 year mortgages can be found as low as 3.50% and 15 year rates as low as 2.75% with points; no wonder homeowners are taking advantage of these low rates.

Unfortunately many homeowners can't refinance. There is an estimated 11.1 million homeowners who are underwater on their mortgage according to CoreLogic, or 22 percent of all mortgaged properties. They owe more than their home is worth shutting them out of being able to refinance.

Democrats are going to introduce legislation to help these homeowners the President announced recently. You can read more here: More Changes to Make Refinancing Easier.