If you are entertaining the idea of purchasing a Maine lakefront property anytime soon, or have an interest in lakefront real estate in Maine and are wondering when a good time might be to get into the market, today just might be that time.
With all the activity surrounding the Thanksgiving holiday you may have missed this little headline:
Rates on 30-year fixed-rate mortgage hit all-time low -
15-year fixed-rate and 5-year ARM break records: Freddie Mac
Is there any doubt that this is a good time to be borrowing money? Mortgage interest rates are not only staying low, they're inching lower! And it's not just one product - it's 30 year, 15 year and adjustable rate mortgages. Here's the lead from the article posted by the Marketwatch new service on Wednesday, November 25th:
Rates on 30-year fixed-rate mortgages averaged 4.78% this week, matching an all-time low in Freddie Mac's weekly survey of conforming mortgage rates, released Wednesday.
The mortgage averaged 4.83% last week and 5.97% a year ago. This week's average matched a low set the week ending April 30.
"Interest rates for 30-year fixed-rate loans are currently 0.8 percentage points below this year's peak set in mid-June, which shaves roughly $100 off the monthly payments on a $200,000 mortgage," said Frank Nothaft, Freddie Mac chief economist, in a news release.
Fifteen-year fixed-rate mortgages averaged 4.29% for the week ending Nov. 25, a new low since Freddie Mac began tracking it in 1991. This week's average is down from 4.32% last week and 5.74% a year ago.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.18% this week, down from 4.25% last week and 5.86% a year ago. The ARM hasn't been this low since Freddie Mac started tracking it in 2005.
And the 1-year Treasury-indexed ARM averaged 4.35%, unchanged from last week. The ARM averaged 5.18% a year ago. It hasn't been lower since the week ending July 7, 2005, when it averaged 4.33%.
And not only are these mortgage rates at record lows, but the Fed seems determined to keep its borrowing rate at next to nothing to encourage the economic recovery and that means low interest rates should continue on home owner lines-of-credit.
Only you and your financial advisor can determine whether or not you are in a position to borrow, but if you are, you can have confidence that the rate you'll currently pay - even to purchase a second home, vacation property, or camp in Maine - is at, or near, its lowest point in many, many years.
Just more to be thankful for this Thanksgiving holiday!