Mortgage rates match low of 4.32

By
Real Estate Agent with RE/MAX Property Centre

Mortgage rates for 30 years found the lowest in decades, and prices for 15 years, the loans fell to their lowest point in nearly 20 years.

Mortgage buyer Freddie Mac said Thursday the average 30-year fixed loan fell to 4.32 percent, the lowest record for the year 1971. It is up to 4.37 percent the previous week and the same average of four weeks ago.

The average rate for 15-year fixed loans fell to 3.75 percent, the lowest in the fiscal year 1991. Prices are at or near the lowest level in decades, investors poured money into bonds Spring security, lowering yields. Mortgage rates tend to track these outputs.

In recent weeks, Treasury yields have fallen, while bond traders bet the Federal Reserve will soon increase their purchases of Treasury in an attempt to give the economy a lift.

It has lowered rates. However, low levels historically, have done little to boost property market in crisis, which suffered its worst summer in more than a decade. Autumn sales should not be much better.

High unemployment and low employment growth have prevented people from buying homes. And most of the affected markets are preparing for a wave of sales of homes sold in foreclosure or short. A short sale is when a lender allows a homeowner to sell for less than the mortgage is worth.

To calculate the average mortgage, Freddie Mac collects fees from lenders in the country, from Monday to Wednesday each week. Prices often fluctuate significantly, even on a given day.

Offers a five-year adjustable rate mortgage average 3.52 percent, down 3.54 percent a week ago. Rates for one-year adjustable-rate mortgages rose to an average of 3.48 percent to 3.46 percent.

Prices do not include add-on fees known as points. One point equals 1 percent of the loan whole. National payment of loans Freddie Mac study an average of 0.8 points in 30-year mortgages. It was an average of 0.7 points, and for 15 years and 1 year and 0.6 percentage points for loans of five years of loans.

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