Mortgage rates sunk to record lows again this week!
The average rate on the 30-year fixed mortgage fell to 3.94%, matching the all-time low hit in early October, according to Freddie Mac's weekly mortgage rate survey. Meanwhile, 15-year fixed-rate loans hit a new record low of 3.21%, surpassing the record set on October 6. Five-year adjustable rate mortgages also plumbed new depths, hitting 2.86% for the week.
According to Freddie Mac's chief economist, low-interest mortgages will be available at least through mid-2012 .
The low rates can translate into big savings for home buyers. Five years ago, a home buyer would have been lucky to land a 5.5% rate on a 30-year loan. On a $300,000 mortgage, that would have meant the borrower would have paid $1,704 per month. Should a borrower land a 3.94% rate on a $200,000 loan now, the monthly mortgage payment would come to $1422 per month -- a savings of $282 per month! Combine that with the lower cost of housing today and you can see that now really is the right time to buy a home!
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