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Mortgage Rates Plunge to Lowest Ever

But plunging house values make refinancing impossible for many homeowners

By Peter Fearon, Newser Staff

Posted Jan 16, 2009 2:12 AM CST

(Newser) – The benchmark 30-year mortgage interest rate has fallen below 5% for the first time ever as the collapsing economy continues to force interest rates down. Adjustable-rate mortgages fell to 5.25%, reports MarketWatch. But many homeowners can't take advantage of the new low rates to refinance because the value of their homes have dropped below their mortgage debt.

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30-year benchmark mortgage rates are at their lowest since Freddie Mac began keeping track in 1971. (AP Photo/Pablo Martinez Monsivais, File)

Mortgage rates are down but many homeowners can't take advantage by refinancing. (AP Photo/David Zalubowski, file)

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The outlook is very positive that these low mortgage rates will likely persist at least through the first half of
the year.
- Financial analyst Greg McBride

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Mortgage Rates Plunge to Lowest Ever