Categorized | Finance and Mortgage

30-Year Mortgage Loan Rates Hit New Low for 2011

Please Share!

Concerns over the economy in the United States have contributed to yet another decline in the rates for 30-year mortgage loans. According to Freddie Mac, rates for 30-year fixed mortgage loans fell 0.07 percent to 4.32 percent. Rates for 15-year fixed loans also fell to record levels.

With the economy in the United States once again looking as if it may fall into a double dip recession, the Federal Reserve acted to keep interest rates at record low levels until the middle of 2013. That action also contributed to the decline of borrowing costs.

Economic analysts and experts believe that the economy is going to struggle for a long time, and the low mortgage rates may continue to decline in hopes that consumer confidence will once again rise to strong levels. At this time, the real estate market continues to struggle due to consumer doubts, particularly with respect to the lack of interest that people now have in buying homes, or at least borrowing money to do so.

Even with borrowing costs at historically low levels, home sales have remained stagnant or even declined in many areas. The stagnant levels in home sales can be attributed to the banks tightening their lending standards, unemployment rates remaining high, and a plethora of foreclosures that still remain on the market.

Some analysts believe that the real estate market may fall back to the rates of five years ago during the mortgage and housing boom. However, the low rates have not proven to be as successful in 2011, largely due in part to the struggling economy.

Please Share!

About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

Leave a Reply

Twitter Chat