Dropping rates
It is reported today that last week’s 30-year mortgage rates dropped to 4.78%, matching the record low which was set in April while the 15-year home loan rate fell to 4.29%, its lowest rate since Freddie Mac began recording data.
“Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year’s peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage,” Freddie Mac chief economist, Frank Nothaft said in a statement.
Mortgage Planner, Dan Green said, “mortgage rates, like everything else, are cheap this holiday season and should stay that way so long as shoppers stay home.”
Last year at this time, the 30-year mortgage rate averaged 5.97% and the 15-year rate was 5.74% according to Reuters, leaving some speculating that rates will continue to slowly decline.
Ken Montville
November 26, 2009 at 9:20 am
IMHO, low rates, more than any time-limited tax credit, will continue to encourage home ownership. Low mortgage rates combined with affordable home prices (tied to geographic location) will make home ownership attractive and affordable.
The other half of low mortgage rates, though, is the banks’ willingness to lend. Everything being equal if potential home buyers that are financially qualified to get a mortgage at these great rates can’t get to the money, it almost doesn’t matter.
Banks need to loosen up just a tad.