Mortgage rates drop to new low of 4.57 pct. – Yahoo! News
NEW YORK – Mortgage rates fell for the second straight week to the lowest point in five decades. But many people either dont qualify for new mortgages or have already taken advantage of the low rates this year.As a result, the housing market and the broader economy may not benefit much from the lower rates.The average rate on a 30-year fixed mortgage dropped to 4.57 percent this week, mortgage company Freddie Mac reported Thursday. Thats down from the previous record low of 4.58 percent set last week.Its the lowest since Freddie Mac began tracking rates in 1971. The last time rates were lower was in the 1950s, when most long-term home loans lasted just 20 or 25 years.Rates have fallen over the past two months. Investors, concerned with the European debt crisis, have poured money into the safety of Treasury bonds. Treasury yields have fallen and so have mortgage rates, which tend to track yields on long-term Treasurys.However, low rates have yet to fuel home sales. The housing market has slowed since federal tax credits for homebuyers expired at the end of April. And the latest decline in mortgage rates is unlikely to boost the market.
via Mortgage rates drop to new low of 4.57 pct. – Yahoo! News.
Crazy, I can’t believe interest rates are this low! I am eating my own words, yes I was wrong. I thought for sure they couldn’t last this long. Now I am still under the impression, that it is not good as a whole for our economy to keep them to low, however for the average consumer this is great. Now obviously this doesn’t mean go out and by any old house. But, it does mean if you find a deal take advantage of it. Interest rates are at a all time low. What will Interest Rates do from here on into the future? Well apparently your guess is as good as mine. But. rest assured I will have my money on them going up soon.
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