Can Mortgage Interest rates get any lower? According to the Mortgage Banker’s Association the average interest rate for a 30-year mortgage is now at its lowest level since Freddie Mac began keeping its weekly mortgage market survey in 1971. This week the 30-year rate declining again to 4.71 percent, which was down from 4.78 percent a week ago. Last year at this time the 30-year rate was at 5.53 percent in comparison. Rates also were lower for the 15-year fixed mortgage, which fell to 4.27 percent, but according to the Mortgage Banker’s Association many consumers may not have qualified for them because they now face higher credit standards from lenders.
“Interest rates for 30-year and 15-year fixed-rate mortgages fell for the fifth consecutive week to an all-time record low while the average rate on 5-year ARMs hovered near its record set in the previous week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “In addition, interest rates on 30-year and 15-year fixed mortgages thus far in 2009 averaged one percentage point below their respective average in 2008.”
“Low mortgage rates and the cumulative decline in house prices have contributed to an extremely affordable housing market and helped spur home sales this year. For instance, total new and existing home sales in October were 36 percent higher than their January low on a seasonally adjusted, annualized rate, according to the U.S. Census Bureau and the National Association of Realtors® (NAR ). The NAR also reported that pending existing home sales rose for the ninth straight month in October, representing the longest consecutive gain since the series began in 2001, according to the National Association of Realtors . Seven of those months were the most affordable on record dating back to 1971, based on the NAR’s Housing Affordability Index .” Source www.freddicmac.com
