NEW YORK – Mortgage rates have hit lows for the year and could soon near the decades-low levels of last year.
Those rates are providing an incentive for buyers, along with falling home prices. They’re tempting for refinancers, too.
Still, analysts say the combination isn’t likely to lift the depressed housing industry or contribute much to the overall economy. In many metro areas, real estate is straining under the weight of foreclosures, higher down-payment requirements, tighter credit, still-high unemployment and buyers’ expectations of even lower prices.
“If people aren’t confident about the economy, about jobs and home prices, they certainly aren’t going to sign up for the biggest purchase of their lives,” said Greg McBride, a senior analyst at Bankrate.com.
But for those with jobs, money and creditworthiness, today’s rates can be tantalizing.
This week, a qualified buyer could expect to finance a home over 30 years at an average fixed rate of 4.63 percent, according to mortgage buyer Freddie Mac. That’s the lowest average rate in five months. In November, the rate hit a four-decade low of 4.17 percent.
The 15-year fixed mortgage, popular with refinancers, is down to 3.82 percent. That’s also the lowest point since December.
Mortgage rates have fallen for four straight weeks, tracking the yield on the 10-year Treasury note. The 10-year yield has dropped as investors have snapped up Treasurys and other safe securities because of uncertainties about the global economy and the volatile prices of oil and other commodities.
Wow, interest rates are great! As the article says, due to other economic difficulties that many are facing with loss of employment and other factors, not everyone will be is a position to take advantage of the great rates. If you are someone who is in a position to buy, now is the time!
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