Both the 30 and 15 year mortgage interest rated dipped to record lows again this week. They dipped just a smidgeon (yes, that's a REAL word!) but none the less they set new all-time record lows, again.
It's the perfect storm. Home values are at record lows, interest rates are at record lows.
The 30-year fixed averaged 3.34% this week, down from last week's 3.4%. Last year at this time the rate was 4%.
The average rate for a 15-year fixed rate mortgage is an INSANE 2.65%, down from 3.31% last year.
What these record low interest rates mean for you
as a buyer is AFFORDABILITY that has never been seen in modern history!
Today, November 18, 2012, you can buy more house for your dollar, adjusted for inflation, than any buyer has EVER been able to do before!
Homes are more affordable for you today than they were for your grandparents back in the olden days!
If you are sitting on the fence waiting for home prices to fall lower, you are making a big mistake. Once interest rates rise just a little bit, it will MORE than offset any further reduction in home values we may see this year.
Click here to read the entire Realty Times article about this week's interest rates.
The chart below shows the impact of our historical low interest rates back in May of this year, when they were even higher than they are now...
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