Home mortgage rates dropped to a 52 year low this week, to 5.19% for an average 30-year fixed mortgage according to national survey, as reported over at CNN. The last time rates dipped lower than 5.19% was in 1956.
To put the plunge in mortgage rates into perspective, 30-year fixed home mortgage rates averaged 6.77% in late October. That means that a $500,000 home loan would now cost you $507 a month less at the current rates compared to in late October or $6,000 a savings a year and $182,581 over the life of the mortgage.
That's a pretty amazing rate, and it seems a good bet that there isn't much room for much more of a drop.