Buying a House Gets Cheaper as Mortgage Rate Hits New Low
It was revealed on Thursday that 30-year fixed mortgage rates are at a record low for the fourth week in succession.
It is a fascinating period for the housing market. There are reports that actually qualifying for a mortgage is harder than it has been for a long time, as uncertainty reigns over employment in the U.S. But, for those fortunate enough to qualify, it is cheaper to buy a house than it has been in years. The hope will be that people that can qualify will be tempted to buy rather than rent, and give the housing market a much-needed boost.
The most popular mortgage in this country is the 30-year fixed, and it dipped from 3.79% to 3.78% last week. Those same loans average 4.6% in 2011.
To put it into perspective, home owners can save $48 per month for every $100,000 borrowed. Over the full 30 year term, that adds up to $17.217. Meanwhile, the 15 year fixed mortgage stayed roughly the same at3.04%. A year ago, it was at 3.78%.
Freddie Mac's chief economist Frank Nothaft told CNN that, "Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive homebuyer affordability."
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