Mortgage rates have continued to plummet and plunge over the last weeks, once again breaking records and hitting all-time lows for those seeking to buy a home in Metro-Detroit.

The average rate for 30-year fixed-rate mortgages fell again by .04% to hit 3.49%.  Alongside it, the 15-year fixed-rate fell to 2.80% – down from 2.83% the previous week. It’s global economy that is driving these rates down, particularly economic turmoil overseas.

“Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week, allowing fixed mortgage rates to reach record levels,” said Frank Nothaft, Freddie’s chief economist.

The bumpy road to European economic recovery has also been keeping rates from gaining any ground, according to Keith Gumbinger, vice president of HSH.com, a provider of mortgage information and analysis.

“Fresh worries about Spain’s ability to manage its fiscal troubles gives global investors more reasons to pump money into the safety of U.S. Treasury debt, driving yields lower,” he said.

While potential home-buyers don’t typically pay attention to the economic woes of foreign nations, it does impact our economy here at home.  As a result, borrowing costs are plummeting and that’s not just a good thing for first-time home buyers.

Anyone attempting to refinance with a Michigan mortgage lender right now could see huge savings.  For example;  by switching to a mortgage with a rate of 3.49% from a mortgage with a 5% rate, a homeowner can cut $178/month in payments on a $200,000 home loan.  That translates to over $2,000 in savings.

In another report, the Mortgage Banker Association reported that refinance applications have reached their highest level since 2009, accounting for over 80% of all applications filed by members of the association.

For first-time buyers the benefits are huge – especially when you consider that there are programs in Michigan to lower your initial down payment to as little as 1.5%.  In addition, other loan programs can help you rehab a home you find if needs more than just a little TLC.

Learn more about how you can take advantage of the low mortgage rates – contact your Michigan mortgage lender today.