Monday, February 23, 2009

Conventional 30-Year Mortgage Rates reach 40 year lows

According to a chart from the St. Louis Fed the interest rates on 30 year-fixed conventional mortgages has hit all time lows in February 2009. (Or at least since the beginning of the chart---1970's).

What is also interesting is that for every recessionary period (highlighted in gray), the mortgage rate dropped.

Graph: 30-Year Conventional Mortgage Rate

Click for a Larger Image

What does this mean? If you haven't yet looked into refinancing your mortgage, you may wish to consider it---However, given that unemployment continues to rise I think it's safe to say that the recession will continue for a few more months (or quarters). So there's a chance that mortgage rates could drop further---But if you can refinance, definitely look into it--and be sure to get 3 or 4 quotes from competing mortgage lenders.

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