Categorized | Finance and Mortgage

Mortgage Rates Drop to Astounding Lows

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As if mortgage rates weren’t already at historically low rates, they have just dipped a little bit more for some qualified homebuyers. Lenders are offering rates under 4% for 30-year fixed-rate mortgage loans for buyers that are willing and able to pay 3% of the mortgage rate upfront.

With the housing market in yet another deep decline, the news of tremendously low interest rates may provide a much-needed boost. The low rates are being attributed to a combination of factors, most specifically the increase of the debt ceiling, and the dreary state of the economy, both of which caused the rates on the 10-year Treasury note to plunge.

The rates are even low for those who choose to pay absolutely nothing in upfront costs, as they are receiving 30-year fixed-rate mortgage loans at 4.5%. Those paying only 1% of upfront fees are receiving 4.125% fixed-rate loans from some lenders.

Even the nation’s largest home lender, Wells Fargo, is seeing borrowers receive interest rates below 4% on 30-year fixed-rate loans.

These low rates come only one week after 30-year fixed-rate mortgage loans had hit their highest point in a month. However, with the big news that came this week regarding the economy and debt ceiling, such a dramatic decline in rates should come as no surprise.

For those that currently have a mortgage loan, it may be time to consider refinancing. For those that were thinking about buying a house, but needed a little boost to actually make it happen, now just may be the perfect time to seal the deal.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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