Mortgage Rates fall again
Long Beach,Ca. For the third week in a row, 30 year fixed mortgage rates have fallen to record lows while borrowers take advantage and have been making refinance applications soar to the highest levels since 2003. While the Federal Reserve is about to start directing hundreds of billions of dollars into the hard hit housing market, rates have continues a nine week slide.
Current rates are at an all time low since Freddie Mac started to report back in 1971. These fantastic rates are a great opportunity for borrowers with high credit scores and good job incomes ton lower their mortgage rates and save up to hundreds of dollars a month. However, considering that across the board, real estate values have dropped approximately 48% in Southern California over the last two years, a refinance boom will be dependent on whether or not home owners can show sufficient equity in their homes.
Typically, Fannie and Freddie want more and more the home owners to have a min. of equity in their homes. On the other hand, FHA refinancing allows for borrowers to cash out as much as 95% of the value in their homes.
Freddie Mac reported the average 30-year fixed interest rate at 5.1% this week, down from the previous record of 5.14% set last week. This has made nine straight weeks of interest rate drops. All together, mortgage rates have dropped 1.3% since late October.
Understandably, mortgage applications have increased to the highest level in over 5 years. per the Mortgage Bankers Assn. More then 80% of applications came from smart property owners attempting to lower their interest rates. Those unfortunate home owners who have missed a lot of payments due to loss of employment or defaults on their mortgage will simply have to sit out and not be able to reap the benefits of these rates due to the new high standard of lending required Fannie Mae and Freddie Mac.
In order to see if you qualify for a lower interest rate and house payment, you may contact Kirk Mulhearn, Mortgage Planner @ 562-989-4608 ext.110, www.kirkmulhearn.com from for a free copy of your credit report and a mortgage consultation session to see if it is a good time for you to make a move for a lower rate.