Mortgage Rates Fall to Record Lows (again)
MORTGAGE RATES FALL TO RECORD LOWS (AGAIN)
The average 30 year fixed mortgage rate dropped to 3.94% which matches the all-time low in October. The 15 year fixed rate mortgage also saw a new record low of 3.21% which is lower than the previous record held on October 6th of 2011.Adjustable rate mortgages (ARM’s) also fell to new lows—hitting 2.86%.
Mortgage rates have remained near record lows for a couple of months and finally made comparing iva companies a critical skillset when the rates hit the magic number—surpassing the previous records lows.
Interest rates should remain low through mid-2012 according to Freddie Mac’s chief economist, Frank Nothaft.
Home buyers will see substantial savings if deciding to take advantage of the current real estate market. 5 years ago, a home purchaser would have felt “blessed” to obtain a 5% interest rate on a 15 year loan. A borrower would have paid $1,582 per month on a $200,000 mortgage at 5%. At a 3.2% interest rate, the monthly payment would not come in at or around $1,400 per month—a substantial savings of $182 monthly.
Treasury bond yields (which have also stayed low) tend to coincide with mortgage rates. 10-year Treasury notes have fallen below 2% for the past 3 months as investors have stayed away from Europe and its debt issues.
Low home pricing combined with historic interest rates make buying a home extremely affordable right now. Call me today for additional information: 208-869-3469!