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Could potential homebuyers finally be getting a relief from this tough Real Estate Market? For the first time since May, mortgage rates sank below 5 percent, according to Freddie Mac. At least for the borrowers who have come out of this recession with 20 percent down and a solid credit rating. The average rate on a 30-year fixed-rate mortgage ending during the week of October 1, 2009, was 4.94 percent down from last week when it averaged 5.04 percent. The borrower would then only have to pay 0.7 percent of the loan amount upfront.
The 15-year fixed rate mortgage averaged 4.36 percent with an average 0.6 point, this week, down from last week when it averaged 4.46 percent. A year ago at this time, the 15-year fixed rate mortgage averaged 5.78 percent. This is the lowest the 15-year fixed rate mortgage has been since Freddie Mac started tracking it in 1991.
Adjustable Rate Mortgages are also at an all time low, averaging 4.42 percent this week, with an average 0.6 point, down from last week when it averaged 4.51 percent. A year ago, the 5-year adjustable rate mortgage averaged 6.00 percent.
The all time low for the Freddie Mac survey, began in 1971, and was recorded in April. It showed a 30-year fixed rate for a solid borrower at 4.78 percent with 0.7 percent in lenders fees. Last year at this time, 30-year fixed loans were at an average of more than 6 percent. Even 15-year fixed loans were at 5.78 percent. Freddie Mac released in a survey on October 1, that 15-year fixed loans are averaging 4.36 percent and 0.6 percent in points, an all time low.
Frank Nothaft, Chief economist for Freddie Mac noted that although existing home sales fell in August, it was still one of the strongest showings in 23 months. “Low mortgage rates are helping stabilize home sales,” says Nothaft. In July, house prices increased for the second month in a row, after adjusting for seasonality. Increases were more broad-based in July with the prices of houses rising in 17 of the metropolitan areas, compared to 16 of the areas in June. In August, new home sales skyrocketed to the highest pace since September 2008. The inventory of unsold houses fell to the lowest level since February 1983.
You are probably asking why the rates are so low. You can thank the Federal Reserve for that. The Federal Reserve is planning on buying $1.2 trillion in mortgage bonds, given out by Freddie Mac and other government-controlled entities.
Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes. http://www.homesinsale.com Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-rates-nearing-an-all-time-low-1330446.html
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