Mortgage Rates Once Again Hit a New Low
Mortgage interest rates are once again hitting brand new lows. Indeed, reports CNN Money, 30 year fixed rates are at their lowest since the industry has been keeping track of this sort of thing:
Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That’s down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year.
The 30-year fixed rate mortgage has not been lower since Freddie Mac started conducting the survey in 1971. …
The 15-year fixed rate mortgage this week averaged 4.62%, which is down from 4.83% last week. A year ago at this time, that rate averaged 5.43%.
The 15-year rate has not been this low since June 13, 2003, when it averaged 4.6%.
One of the main reasons home mortgage interest rates continue to fall is to do with the fact that the government has been buying mortgage backed securities. The idea was to free up some of the money supply.
However, even with the lower rates, mortgage applications are dropping. And, of course, there is no guarantee that you will be approved for a mortgage loan or for refinancing if you try to take advantage of these low rates. If you plan to attempt to get financing at this time, make sure that you have a good credit score, that you have equity if you are refinancing, and that you have a down payment if you are getting a first home mortgage.
I’m getting excited, though. I’m fairly certain that I can qualify for refinancing, and I am hoping to be able to get a lower rate — one that is low enough that I can shorten the mortgage loan term as well. This could be a great opportunity to build equity faster and save money on my home mortgage loan interest.
