ACT NOW! Mortgage Rates Fall as They Approach All-Time 50-Year Low

Rates on 30-year fixed-rate mortgages dropped below 5 percent this week as the Federal Reserve seeks to push mortgage rates lower. Homeowners see this as good news as they line up to lock in new mortgages at lower rates.

Freddie Mac reports 30-year fixed rate mortgages fell to an average of 4.98 percent. One year ago, 30-year mortgages were averaging 5.87 percent.
Nancy Vanden Houten, economist at Stone and McCarthy Research Associates, believes we have “found bottom” and that interest rates will hover between 5.00% to 5.25% for a while.
Market watchers report adjustable rate mortgages are also down from rates one year ago, however, there is little difference in rate to cause buyers to choose this riskier mortgage product.
And on the refinancing market? The Mortgage Bankers Association reports refinance applications jumped 30 percent last week. Refinance of existing mortgages in January jumped to their highest level since 2003. The expectation is that refinancing demand is likely to continue this summer as a new federal program to help homeowners lower their monthly payments kicks in allowing people to refinance and get out of high-rate mortgages. Shop around for the best rate.
There’s never been a better time to be building your new home. With competitive pricing and low interest rates, now is a great time to consider purchasing your new home. Take action now while rates are at 50-year lows. If you’re wondering if interest rates will go up, ACT NOW! – a 50-year low is a pretty great rate!