30 Year Mortgage Rates Fall to Record Lows

For the eighth straight week mortgage rates fall, continuing to break new record lows. 30 year fixed rate mortgages are now averaging well below historic lows. These average national mortgage rates are reported by Freddie Mac, one of the largest holders of US mortgages.

Mortgage Rates at Record Lows

Current mortgage rates are now the lowest since the Freddie Mac began compiling mortgage rate data in 1971. In addition to the 30 year mortgage rate dropping, the shorter term 15 year mortgage rates are now at unbelievable lows too.

The latest drop in mortgage rates is the compilation of several bad news stories regarding the economy, but great opportunities if you are sitting on the sidelines considering a new home purchase or refinancing your current mortgage.

Weak Economy is Opportunity for Home Buyers

Real estate data providers CoreLogic, Zillow, and RealtyTrac released reports of continued record foreclosures and short sales in the market. These numbers concern investors that a mortgage and real estate market recovery is still very distant. In addition, the Federal Reserve reported yesterday that the economy still needs their support and will continue buying US Treasuries, reinvesting about $15-20 billion a month in maturing agency and mortgage-backed securities.

These economic indicators and Fed intervention is likely to continue holding down mortgage rates in the near-term.

Should I Buy a New Home?

I’ve been talking to a lot of you still sitting on the fence, many of you potential first time home buyers. And the questions I get are all about the same:

“David, I hear all the news about low mortgage rates and deep discounts on homes, but should I buy?”

Here is the quick checklist I go through with them. You can review it yourself and see if you should be calling me now.

1. Do you have a good job?
2. Are you paying your current bills on time?
3. Do you have savings for a down payment?
4. Do you have a little extra savings?
5. Are you currently making regular, on time rent payments? (Mortgage payment may be less)

Should we be talking?

Here’s my number: 248-724-2200. Let’s get you approved with Michigan’s Top Mortgage Lender in customer experience.