Categorized | Finance and Mortgage

Mortgage Rates Drop to Lowest Rate in 60 Years

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As if mortgage rates weren’t low enough, they have once again fallen to a new record low. Mortgage rates are now at their lowest rate in over sixty years, with thirty-year fixed-rate mortgages at 4.09%, and fifteen-year fixed-rate mortgages at 3.3%. Both thirty-year, and fifteen-year fixed rate mortgages have seen roughly a half percentage point decline in the past year alone.

The most recent drop in mortgage interest rates can be attributed to the debt problems that Europe is currently facing. Aside from those battling with underwater mortgages, there are many homeowners that could benefit from refinancing with the current rates. According to reports from Fannie Mae and Freddie Mac, there are nearly eight million homeowners with loans over six percent. Thus, these individuals could essentially save almost two thousand dollars a year simply by refinancing.

For those that qualify, refinancing is clearly an attractive option. Real Estate experts and United States Government officials both are pushing homeowners to look into refinancing because it could serve to provide a much-needed boost to the overall economy. Lower mortgage payments could essentially provide homeowners with more spending money. In fact, if all those that qualified were to actually refinance, an extra eighty-five billion dollars would be pumped into the economy.

Unfortunately, many of those with mortgage rates over six percent would not actually qualify for refinancing due to various restrictions. It is for that reason that real estate experts continue to remain skeptical about the future of the United States housing market. There is, however, a legislative act being pushed through Congress at this time that would reduce some of the current restrictions on refinancing.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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