The mortgage rates, especially pertaining to the months thus far in 2012, are one of the central reasons for such a strong Real Estate market rebound nationwide. Freddie Mac, the giant firm in the housing finance industry, surveys mortgage lenders on a weekly basis and have brought forth some constant statistics showing record rates. Moreover, Freddie Mac are concerned with the lenders giving loans up to $417,000 to those with good credit who are borrowing, as well as down payments of 20% for home purchases or if they are refinancing, at least that much equity already in the home.
Now, as recently as last week, Freddie Mac noted that fixed-rate mortgages have dropped to yet another record low. It was not long ago when we just reported in a blog how Zillow identified that 30-year mortgage rates were at their all time low as well. Where here it was recorded at 3.66% as of February 7th of 2012, now just as of July 5th it dropped even lower to 3.62%.
Since 1971, Freddie Mac has been providing individuals with this valuable insight. With such a lengthy history of research, it seems even more incredible to understand that in the past eleven weeks, the 30-year loan has hit or matched a previous record low for ten of those weeks. Ten out of the last eleven; truly astonishing.
Looking to the 15-year mortgage rates, they to have experienced a decline. This past week brought word that the 15-year loan has hit its own record being 2.89%, which is less than the 2.94% it was just a week ago. It must be noted that the previous week of 2.94% in its own right was a record itself as well.
Starting rates for adjustable-rate mortgages indeed found themselves at or close to record lows over the past week as well. In addition, for the previously mentioned record low of 3.62% for the 30-year loan, borrowers were only required to pay roughly 0.8% of the total loan amount to the lenders. For the record that the 15-year loan endured of 2.89%, only 0.7% of the entire loan would have initially fallen on the responsibility of the borrower. Taking a glance at all of this information from a distance, it definitely is evident that this is a wonderful time to take advantage of these rates. This becomes the case especially if one is still debating about whether to enter the market and satisfy the true American Dream of becoming a proud homeowner.
More Information: Los Angeles Times