Mortgage Rates Hit Record Low: Reports

Mortgage Rates Hit Record Low: Reports

Mortgage Rates on the Down-slide

Mortgage rates for a 30 year fixed loan have dropped to an all time low of 3.49 percent for the first time in the last 60 years.

That is a four point drop in just a week. Rates have not been this low since back in the 1950’s.

Home prices are starting to stabilize in the larger housing markets.

Builders’ are starting to show more confidence, and are putting up more homes than they have in nearly four years. Still, the pace at which homes are being sold are below average.

CNN reports, the faltering economic recovery — both at home and in Europe — has kept rates on the long slide.

“Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week, allowing fixed mortgage rates to reach record levels,” said Frank Nothaft, Freddie’s chief economist.

People are still having trouble qualifying for loans, or coming up with the large down payment required by the banks. However, mortgage applications in the U.S. climbed last week as low borrowing costs spurred refinancing.