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Mortgage rates fall
Good news: Mortgage interest rates did fall again, as expected.
Freddie Mac is reporting the average 30-year, fixed-rate mortgage this week was at 5.53 percent, the lowest rate since Januray.
We've already seen a boom in refinancings, as people rush to cash out of expensive loans or ones that are about to reset to higher rates.
Bet that boom continues.
And look at 15-year, fixed-rate mortgages, they're averaging 5.33 percent, Freddie Mac says. That's the lowest since March.
A year ago, 30-year , fixed-rates were closer to 6.
This would be a great time to refinance, if you qualify.
Consider a 30-year, fixed rate mortgage of $100,000 at 5.5 percent. The principal and interest payment would be $567.79. If that rate were 6 percent, the payment would be $599.56.
The difference is a savings of $381.24 a year.
Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...
Comments
When is our goverment going to listen to someone who knows what is REALLY going on?
http://www.housingwire.com/2008/12/04/treasury-considering-45-percent-mortgages-report/
Lowering the interest rates will DO NOTHING TO HELP THE HOUSING MARKET. Period.
With credit as tight as it is,requiring higher downpayments, 700 plus credit scores to qualify for the rates, 99% of the homeowners out there that really need the help won't get it. Simply put, foreclosures will continue and that will drive the prices down and drive more homeowners to walk away.
The problem is that our Treasury Sec Paulson never thought out the bailout of his Harvard buddies. Why where no contingencies placed on the bailout using TAXPAYER dollars, such as a REQUIREMENT to help homeowners in trouble. If I have a choice between bailing out a greed golden parachute company and the elderly couple who got a predatory lending refi to pay medical bills, well the choice is easy.
Some my say why bailout anyone? Simple the problem is not "contained" to homeowners. Look at the national news as jobs, retirements, college funds, savings and 401K dissappear for those that NEVER had anything to do with housing. Yet they are being greatly affected.
Sadly, our goverment today is run by a legalized Mafia that has turned away from the our constitution. Forgeting the first three words, "We The People.."..it needs to be changed to Us, the Corporations..."
Posted by: Annie | December 4, 2008 5:24 PM
They are a little behind. I gave 2 people rates at 4.875%. Also, this will help home sales. People have been sitting on the fence and will now buy - good buyers who can afford these homes.
Posted by: bill | December 4, 2008 5:28 PM
The entire housing and Mortgage market has been so tough, someone at my church Paid for someone's mortgage after being inspired from a message.
www.TheGiftRevolution.com
Posted by: Marc Millan | December 7, 2008 10:07 PM