The average rate on a 30-year fixed rate mortgage dipped this week to 4.78%, the lowest levels we’ve seen since December 2009 and only slightly above that record low number of 4.71%.

The average rate on a 15-year fixed rate mortgage also dropped to 4.21%, which is the lowest 15-year fixed rate since the late 1980′s.

The economic situation in Greece and other European nations has caused the euro to drop significantly over the past several months. The result of which is falling stock markets around the world.

Whenever stock markets fall, investors often pour their money into the relative safety of bonds, causing mortgage interest rates to fall as a result.

It’s not just Europe investors are concerned about; the United States has also taken on tremendous debt and investors are concerned that both U.S. debt and the precarious economic situation in Europe could cause the economic recovery in the U.S. to stall.

That said, if Europe works out it’s financial troubles, economic recovery here in the U.S. could continue on an upward trend, driving mortgage rates higher, so if you’re considering refinancing, now may be a good time to take the leap.

Popularity: 2% [?]