Mortgage rates at lowest in decades

HADLEY, Mass. (WWLP) - The housing market could get a much-needed lift because mortgage rates are continuing to drop.

Lending giant Freddie Mac says that lending rates have not been this low since long-term mortgages started in the 1950’s.

Rates on 30-year loans have hovered below 4% since last December. Freddie Mac says the average rate on 30-year loans is now 3.62%, and 15-year mortgages are even lower, at 2.89%.

Gary Talbot, a mortgage consultant at UMass Five College Federal Credit Union , told 22News that it is worth looking into refinancing right now.

“Today, people are going to be able to refinance from their higher, 30-year down to a 15-year at virtually the same payment they are paying today; knocking 5, 10, 15 years off their loan and saving upwards of 66% of their interest they would normally pay,” Talbot said.

Bankrate.com says that the last time 30-year fixed rate mortgages were above 6% was in November of 2008. Then, a $200,000 30-year mortgage would carry a monthly payment of $1,241.

With today's rates, that same mortgage would be $939 a month.