During these bad economic times and continued concerns about economies abroad; a drop in the stock market causes a drop in mortgage rates. A 30 year fixed rate mortgage averaged 4.39% for the week ending August 4th. This is the lowest level for mortgage interest rates in 2011 so far. A 15 year fixed rate mortgage is at 3.54 and a 5 year Treasury indexed hybrid adjustable rate mortgage stands at 3.18%.
Because of mortgage rates going down, those who have homes on the market will be refinancing because their homes have not been selling and will not sell unless there is a price adjustment. An interesting statistic released is that 26% of those who refinanced in the second quarter of 2011 have sold their homes after they had struggled before refinancing.
However, some still cannot refinance simply because of the appraisal values on their homes will not allow them to. Mortgage rates have the possibility of dropping even more for those who are still trying to refinance.
For me personally, I refinanced my home six months ago at what was a low rate back then. Today looking back, I along with many others, wish we had waited until today to refinance.