It seems like every week, mortgage interest rates are pushed to a new low. Last week, interest rates of 4.54% for a 30-year fixed loan were reported, the lowest since since Freddie Mac began tracking rates in 1971. This week the trend continues.
Mortgage rates are now at probably at their lowest level in at least 60 years. Freddie Mac said Thursday that the average 30-year fixed-rate mortgage was 4.49%, offering the most attractive opportunity for those who qualify to refinance or purchase a home. 15-year fixed-rate loan average l3.9%, the lowest on record. It is the sixth time in seven weeks that interest rates have reached a new average record low.
The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years.
So why have sales of previously occupied homes been sinking? A variety of reasons may be keeping people from house hunting. Many home buyers already took the plunge into the housing marking when the federal government was offering $8,000 first time home buyer rebates. Some potential borrowers don’t have the income or down payment to buy. And for home owners, refinancing is difficult because so many mortgages are now under water.
Are you one of the lucky ones with a secure job and a ready down-payment? Twin Cities home builders like Norton Homes are striking great deals with would-be home owners.