It was another steady week for mortgage rates. According to Freddie Mac, rates averaged slightly below 4.0% for the last week in December. The key average — the 30 year fixed rate loan — was 3.95%, which is up from 3.91% from the previous week. For the same week in 2010, a 30 year fixed rate loan was 4.20%, which means that rates have dropped about a quarter of a point when comparing the same week for 2010 and 2011.

Remember that those rates are the average from across the country. Different types of mortgage loans will have different rates. If you have lower credit scores, are purchasing a home with less than 25% down, or are refinancing your current mortgage, all of these factors would increase the rate that you would be eligible for. And as a regular reader of this blog, you know that rates fluctuate several times a day, especially when there is significant economic volatility.

The bottom line is if you have a Utah mortgage and are looking for a new mortgage in Utah, then now may be the time to refinance if you are paying any more than 5.0% on your loan. Stay tuned next week when we talk about where most experts predict that rates will go in 2012. I think you will find the discussion interesting.