Mortgage Rates At Record Lows

Mortgage rates see record lows as fixed 30-year loans fell to 4.71% and 15-year rate standing at an average 4.27%. A direct result from the Federal Reserve’s program that allowed them to buy about $1.25 trillion in securities backed by home loans. Also contributing to the decline were Fannie Mae and Freddie Mac who purchased mortgages converted into bonds bringing down the yields that allowed lenders to reduce mortgages rates.

However, taking advantage of this historic buying opportunity (low interest rates/tax credit) is being hampered, with unemployment at 10% and the average American feeling low job security confidence. Its clearly obvious when Americans get their jobs back and unemployment rates decline that will lead the revival of the housing market. But till then the number of foreclosures will rise, and push existing home prices lower.

A bargain hunters dream! If you can afford to buy a house now…

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Tags: Housing Market, Mortgage Rates

This entry was posted on December 5, 2009 at December 5, 2009 and is filed under Housing Market. You can follow any responses to this entry through the RSS 2.0 feed.