This week’s mortgage rate survey by Freddie Mac reports the lowest 30-year fixed-rate mortgage at 4.36 percent, since the report began in 1971. Last year at this time, the 30-year fixed-rate mortgage averaged 5.14 percent.
Amy Crews Cutts, the deputy chief economist for Freddie Mac, claims that while house prices still appear to be stabilizing; the drop in existing home sales by 27 percent and of 12 percent of new homes sales this July has led market concerns that the housing market may slow the economic recovery. This concern has lead to long-term bond yields to drop to the lowest levels of the year and this has resulted in new record lows for fixed rate mortgages.
This low rates provide an exceptional opportunity for new house buyers to enter the market and take advantage of also lower housing prices.