For those who can qualify for a loan, this is the most affordable mortgage rates in decades.
Freddie Mac reported Thursday, that the opportunity to buy a home or refinance at this time is lost because of the tough economy and tight credit standards. However, for those who have secure jobs, superior credit and strong finances could do even better than the 4.54 average rates.
This is the lowest rate since Freddie began tracking rates in 1971. It also marks the fifth time in six weeks that the mortgage company has reported hitting a new average low.
Yet, you can get even lower if the borrower pays more than 20 percent down payment and or have the proper credit.
“Scores matter,” said Ritch Workman, co-owner of Workman Mortgage in Melbourne, Fla. He can offer a rate of 3.375 percent on a $200,000 Freddie Mac loan. The caveat: The borrower must put down 20 percent, have a credit score of 800 and pay $1,400 in add-on fees.
Similar loan is also advertised by Susquehanna Bank, which has branches in Pennsylvania, New Jersey, Maryland and West Virginia. However, the demands credit scores 720 and add-on fees of $ 750.
There are times that the best rates are offered by community banks or credit unions. They hold mortgages on their books instead of selling them to investors, said Greg McBride, senior financial analyst at Bankrate.com. Mortgage Bankers at other times, major banks or at least offer the best deals.
Remember that prices vary significantly, even a day, such as air tickets is a tourist site. And the key to finding the best rate is to shop around online and in person.
In both cases, the borrowers have good contracts. The last time home interest rates were lower loan was made in 1950, when most mortgages lasted just 20 or 25 years.
15-year fixed interest rate financing a popular choice for refinancing, also the lowest during the accounting year 1991. That rate fell to 4 percent from 4.03 percent last week.
Mortgage interest rates have fallen since spring. Yields on U.S. Treasury bonds have dropped as jittery investors seek safer investments. Rates tend to track the yields on Treasury’s.
Low rates helped spark a little activity in the weak housing market. Applications to purchase homes rose 2 percent last week from the previous week, the Mortgage Bankers Association said Wednesday.
High unemployment, slow employment growth and tightening credit have been difficult for many to buy homes. Home sales received a boost this spring when the government offered tax breaks homebuying, but the appeal is faded because it ended in April.
Home sales fell 5.1 percent occupied in June home sales rose last month but the month was lower and the second summit came after sales fell in May refinancing activity has increased over last month that owners look for more affordable monthly payments. But many cannot access loans nor have no money to pay closing costs. And the rates have been low for so long that many have already refinanced. To calculate the national average, Freddie Mac mortgage rates collected from Monday to Wednesday each week from lenders around the country.
Offers a five-year mortgages at 3.76 percent average rate, while the 3.79 percent a week ago. Mortgage offers a one-year floating rate fell to an average of 3.64 percent from 3.70 percent. Prices do not include add-payments or credits. One point equals 1 percent of the loan amount. National payment mortgages Freddie Mac report, on average, 0.7 points for all loans.