Could now be the time to get off the proverbial fence and buy a new home? Some homeowners are concerned that if they sell their current residence they may lose money, or only break even with today’s real estate prices. However with the new interest rates flirting with 4% (or even 3% if you do a 15 year!), any loss on the sale of an existing home could really be a gain in the long run with these kind of savings.
“Mortgage rates continued to inch downward into new record territory this week as worries about the European debt crisis continued to make Treasuries and mortgage-backed securities that fund most home loans look like safe bets to investors.
Borrowers finally seem to be responding to lower rates, with demand for purchase mortgages and refinancing picking up last week.
Rates on 30-year fixed-rate mortgages averaged 4.09 percent with an average 0.7 point for the week ending Sept. 15, a new low in records dating to 1971, Freddie Mac said in releasing the results of its latest Primary Mortgage Market Survey. That’s down from last week’s record low of 4.12 percent, and a 2011 high of 5.05 percent seen in February.
Rates on 15-year fixed-rate mortgages averaged 3.3 percent with an average 0.6 point, down from 3.33 percent last week and a 2011 high of 4.29 percent in February. That’s a new low in records dating to 1991.
For five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.99 percent with an average 0.6 point, up from last week’s record low of 2.96 percent but down from a 2011 high of 3.92 percent in February.
Freddie Mac’s survey showed rates on one-year Treasury-indexed ARMs averaged 2.81 percent this week with an average 0.6 point, down from 2.84 percent last week and a 2011 high of 3.4 percent in February.”
Source: Inman News