National Average Mortgage Rates Below 4%
National average mortgage rates on 30 year fixed rate loans slipped below the 4% mark for only the second time in 2011, according to the latest data from Freddie Mac.
The unpredicted drop in rates came as a result of Treasury bonds falling below 2%, with consumer worries regarding the European debt crisis significantly impacting US financial markets.
Last week, the national average for the 30 year loan hit 3.99% – the same loan having hit 3.94% during the first week of October which was the lowest level ever recorded.
15 year fixed rate mortgages also saw a slight reduction, reaching 3.30% down from the 3.31% of a week ago, sparking an increase in refinance activity from homeowners able to qualify for the new low rates.
According to Freddie Mac, low mortgage rates have combined with soft house process to keep buyer affordability at historically high levels for an extended period. Furthermore, current mortgage payers have the potential to save tens of thousands of dollars on their current terms, by switching their much higher rate loans to one of the current deals of incredible value.
It is once again hoped that the reduction in overall US mortgage rates will spur potential buyers to create the spark in the market that has been so desperately needed, stemming the tide of foreclosures and clearing up dead inventory currently plaguing the US coast to coast.
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