30 Year Fixed Mortgage Rates have now fallen below the 4% level this week. This is only the second time ever that mortgage interest rates on home loans have dropped below this 4% threshold.

The all-time low mortgage interest rate record for the 30 year fixed mortgage rate was set only 5 weeks ago. The interest rate had dropped to an incredible 3.94 % and although this week it stands at 3.99 % this is still great news for home buyers looking to get a mortgage rate set in stone for the next 30 years. Compared to 20 + years ago when mortgage interest rates were up in the mid teens percent!

The 30 year fixed mortgage rate did climb up above the 4 % level last week but has now retreated back down to 3.99 %. This is shows an improvement on 12 months ago when the fixed interest rate on a 30 year mortgage stood at 4.2 %.

The average rate on the 15-year fixed mortgage fell last week to 3.30 percent from 3.31percent. Five weeks ago, it too hit a record of 3.26 percent.

Mortgage rates track the yield on 10-year Treasury note, which fell as investors shifted money into safer Treasurys amid fears over Europe’s debt crisis.

With 30 % of home owners being in negative equity, and mortgage interest rates being at an all time low, now is a great time to refinance your home. And a fixed rate mortgage could provide you with a financial lifeline and dramatically reduce your monthly payments as well as protect you from interest rate rises in the future, especially if the economy is slow to recover and inflation rates soar.

Refinancing activity jumped more than 12 percent last week from the previous week, to the highest level in a month, according to the Mortgage Bankers Association. But refinancing is down 13.5 percent from a year ago, and the four-week moving average for purchase and refinancing mortgage applications is down slightly, suggesting the low rates are failing to entice many Americans.

Just five years ago, they were closer to 6.5 percent. Ten years ago, they were above 8 percent.

The average fixed mortgage interest rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest fixed interest rates. One point equals 1 % of the home loan amount e.g. a fixed rate mortgage of $100,000 comes with an extra fee of $1,000.

The average fee for the 30 year fixed mortgages was unchanged at 0.7 %. The average fee on the 15-year fixed home loan rose by just 0.1 % to 0.8 %.

This is great news for first time home buyers for 2 reasons.

• House prices are at a 10 year low due to the recession and lack of demand so there are plenty of bargains out there for first time home buyers.
• Interest rates at at an all time record low

So now is a fantastic time to fix your home mortgage interest rate with  30 Year Fixed Mortgage Rates probably being the best choice in the long term.