Mortgage rates are on a roll.

For the second straight week, Freddie Mac reports that U.S. rates improved, with the average 30-year fixed rate mortgage falling 0.06 percentage points to 4.31% nationwide. 

15-year fixed rate mortgage rates improved, too, moving down 0.02 percentage points. The 15-year rate now averages 3.39%.

Click here for up-to-date U.S. mortgage rates.

Mortgage Rates On Mini-Winning Streak

Mortgage rates are recovering. After a tumultuous late-Spring which saw conventional 30-year fixed-rate mortgage rates rise more than 1 percentage point, a pullback in underway.

Home buyers have regained lost purchasing power. Homeowners have found reason to refinance.  

Over the past two weeks, the typical new mortgage payment is down 2.3%, opening opportunities via Fannie Mae- and Freddie Mac- programs such as Conventional 97 and HARP 2.0; and, via other government-backed programs including the FHA Streamline Refinance and the bevy of VA loans available via the Department of Veterans Affairs. 

Furthermore, the outlook remains strong for today's rate shoppers -- at least through July 31, anyway.  This is the date the Federal Reserve adjourns from its scheduled, 2-day meeting. Its post-meeting statement is expected to move markets.

Remember back to May 1. That was the day the Fed announced it would re-evaluate QE3, the central bank's mortgage-rate suppressing program. Predictably,  rates surged on the news, ending the longest bull-run in mortgage rates since the early-1980s.

The Fed's remarks after its July 31 meeting could have a similar effect.  

If the Fed says full-strength stimulus is still required to aid the U.S. economy, mortgage rates will continue their recent march lower toward 4 percent. In time, rates may even drop into the 3s -- especially should the economy shows signs of slowing through the third and fourth quarters.

Click here for up-to-date U.S. mortgage rates.

Freddie Mac : Rates Are Best Since Start Of July

Each week, Freddie Mac asks 125 banks nationwide about their "going rate" for a prime mortgage borrower with 20% downpayment and excellent credit. The results are compiled as the Primary Mortgage Market Survey (PMMS), a weekly pulse of U.S. mortgage rates.

This week's survey puts the average 30-year fixed rate mortgage at 4.31% nationwide for borrowers willing to pay 0.8 discount points. Discount points are optional closing costs and are expressed as a percentage of your total loan size.

1 discount point on a loan at the national conforming loan limit of $417,000 costs $4,170. Loans with 1 point made for $625,500 in such high-cost areas as Loudoun County, Virginia; San Jose, California; and  New York, New York would carry an additional cost of $6,250.

Freddie Mac's complete mortgage rate breakdown for the week showed :

• 5-Year Adjustable-Rate Mortgage : 4.31 with 0.8 discount points
• 15-Year Fixed-Rate Mortgage : 3.39 with 0.8 discount points
• 30-year Fixed-Rate Mortgage : 3.16 with 0.7 discount points

Borrowers preferring to pay zero discount points should expect slightly higher rates that the Freddie Mac "with points" figure, as should mortgage applicants preferring zero-closing-cost mortgages.

Click for today's zero-closing-cost mortgage rates.

See Today's Low Mortgage Rates Here

For U.S. home buyers and would-be refinancing households, this week's improving market presents a second opportunity to lock in low rates. There are millions of U.S. households still eligible for the HARP refinance program, and the typical HARP homeowner saves 20% or more on his mortgage.

See today's live mortgage rates. Rates are available online at no cost and with zero obligation.

Click for today's live mortgage rates.

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