As of the week ending September 8th, mortgage rates have hit a new record low. After a brief uptick in rates, they are back down and averaging 4.12 percent for a thirty year fixed rate. The week prior, rates were averaging 4.22 percent and one year ago rates were 4.35 percent.
A fifteen year mortgage is averaging 3.3 percent, down from 3.39 percent. Mortgage rates have not been above 6 percent since November 2008. Although these rates are reflective of serious market concerns and a weak economic outlook, this is a great opportunity for home buyers and those who want to refinance.
Want to lock in these rates? The thirty year fixed rate requires payment of an average 0.7 point while a fifteen year requires payment of an average 0.6 point. A point is 1 percent of the mortgage amount, charged as interest.
If you're concerned about being able to qualify, you may want to begin getting your financial house in order and wait a few more months. President Obama's address last week identified some ideas for creating jobs and improving the economy, one idea is making it easier to refinance. If it's easier to refinance and more responsible homeowners can take advantage of these low rates the idea is homeowners will spend the money they are saving by reducing their mortgage payments.
Check out these news reports and more at http://online.wsj.com/public/page/news-real-estate-homes.html?mod=WSJ_topnav_realestate_main.
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