lowrate.com

People looking to buy a new home or refinance their mortgage might have more incentive than ever.

That’s because mortgage rates declined again this week, according to real estate tracker Bankrate.com. The average interest on a 30-year fixed-rate mortgage now sits at 4.74 percent, down from 4.77 percent the previous week. The rate on 15-year fixed-rate loans followed suit, dropping from 4.23 percent to 4.18 percent. Five-year adjustable-rate mortgages are down to 4.06 percent and seven-year ARMs have fallen to 4.36 percent, said the report.

Lower rates could greatly benefit homeowners who want to refinance their home. A borrower who took out a $200,000 loan in November 2008, when rates averaged 6.33 percent, could save up to $200 a month by refinancing at today’s rate of 4.74 percent, said Bankrate.com.

Many current homeowners might be in tune with that line of thinking. According to the Mortgage Bankers Association’s weekly application survey, the number of borrowers who submitted applications to refinance their mortgage increased 8.6 percent for the week ending July 16. Refinancing makes 79.4 percent of overall mortgage activity, said the banking group.