The mortgage rates, especially pertaining to the months thus far
in 2012, are one of the central reasons for such a strong Real
Estate market rebound nationwide. Freddie Mac, the giant firm in
the housing finance industry, surveys mortgage lenders on a weekly
basis and have brought forth some constant statistics showing
record rates. Moreover, Freddie Mac are concerned with the lenders
giving loans up to $417,000 to those with good credit who are
borrowing, as well as down payments of 20% for home purchases or if
they are refinancing, at least that much equity already in the
home.
Now, as recently as last week, Freddie Mac noted that fixed-rate
mortgages have dropped to yet another record low. It was not long
ago when we just reported in a blog
how Zillow identified that 30-year mortgage rates were at their all
time low as well. Where here it was recorded at 3.66% as of
February 7th of 2012, now just as of July 5th it dropped even lower
to 3.62%.
Since 1971, Freddie Mac has been providing individuals with this
valuable insight. With such a lengthy history of research, it seems
even more incredible to understand that in the past eleven weeks,
the 30-year loan has hit or matched a previous record low for ten
of those weeks. Ten out of the last eleven; truly astonishing.
Looking to the 15-year mortgage rates, they to have experienced
a decline. This past week brought word that the 15-year loan has
hit its own record being 2.89%, which is less than the 2.94% it was
just a week ago. It must be noted that the previous week of 2.94%
in its own right was a record itself as well.
Starting rates for adjustable-rate mortgages indeed found
themselves at or close to record lows over the past week as well.
In addition, for the previously mentioned record low of 3.62% for
the 30-year loan, borrowers were only required to pay roughly 0.8%
of the total loan amount to the lenders. For the record that the
15-year loan endured of 2.89%, only 0.7% of the entire loan would
have initially fallen on the responsibility of the borrower. Taking
a glance at all of this information from a distance, it definitely
is evident that this is a wonderful time to take advantage of these
rates. This becomes the case especially if one is still debating
about whether to enter the market and satisfy the true American
Dream of becoming a proud homeowner.
More Information: Los Angeles Times