Can you believe it? Interest rates were below 5% and are DROPPING! Zero down loans, bargain loan rates, low selling prices, large inventory to choose from… Could there be a better time to buy?
The 10 Year Treasury Note has dropped below 3%. This is a leading backing to the home lending rates. According to a recent survey from Freddie Mac “typical” interest rates on 30 year fixed rate loans are down to 4.55%. That is the lowest since December of 2010.
15 year fixed loans drop to less than 3.75%. That is the lowest since November of 2010. The numbers given have were by owners placing 0.6% lender fees for the 30 years loans and 0.7% for the 15 year mortgages.
Is this starting a mad rush to refinance? According to Freddie Mac when rates dropped this low last year refinance applications surged on both occasions. So far that has not happened. According to the weekly survey by the Mortgage Bankers Assn., applications for refinance fell 4% the last week of May from the previous week. Currently they are down by 5.7%.
The last time rates were down this low refinance volume was up 20% according to Mike Fratantoni, a vice president of the trade group. The reason may very well be the fact that many who would refinance can not. Many are so far under water (loan balance less than current market value) that refinancing is not an option.
$ sources: Los Angeles Times ð
$ Freddie Mac survey ð
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