Jul 11, 2009
30 Year Mortgage Rates - How Low Will They Go?
The 30 year mortgage rate has been for quite a ride over the last few weeks. After getting to the top of the roller coaster ride, it now looks like it is time for average mortgage rates to come down. Over the last three weeks, we have seen mortgage rates fall from 5.59% to 5.2% and they are likely to fall even more. With the Federal Reserve buying up United States debt, current interest rates are sure to fall.
This is great news for current home owners looking to refinance. If you have been debating a refinance in recent months, now might be the time to go after this financial opportunity. Many people will tell you that mortgage rates are sure to fall so it would be a good idea to wait, but who can pass up an opportunity to refinance around 5%. You will save some money if you wait and rates fall, but is the risk worth the reward?
It is also good news for first time home buyers. First time home buyers are getting one heck of a deal on a house this year. An $8000 tax credit, low mortgage rates and extremely low home prices make it very attractive to get your first home in 2009. You would think that this would help the overall housing market but that has yet to happen. For anyone who has considered buying a home, it would not hurt to start looking in the current economic environment.
If these mortgage rates continues lower, will it help the housing market? Common sense would say that low mortgage rates would definitely help the housing market. Sadly, this have not been the case; yet! The data that we currently have from March and April shows that home prices have no bottomed the way that we would hope. The unemployment rate continuing higher has definitely been a detriment to the overall housing market.
Even though the housing market is not getting better, there might be a silver lining. With mortgage rates low and home prices at levels not seen in decades, we might put a bottom in the housing market very soon. For all the reasons stated above, now is one of the best times in the history of the United States to own or buy a home. Hopefully we will see many new home buyers get off the sidelines and buy the new house that they have been considering.
