Low mortgage rates are perhaps the only thing that will get people to buy a new home or refinance their current home in this difficult market. And that is why a recent trend toward lower rates is being greeted with enthusiasm by real estate brokers and policy makers alike.
Earlier this year, mortgage interest rates dropped below 5% for a brief period of time, setting off an avalanche of refinancing while encouraging fence sitting home buyers to jump into the market. That move helped to stabilize the housing market in some areas, even forcing home prices to rise a bit. Unfortunately, the drop to near historic lows on a thirty-year fixed rate mortgage didn’t last, eventually sending rates above six percent for a brief time.
Rates Are Down And A Tax Credit Nears Its End
Now that rates have begun to fall again, home buyers are starting to show interest in entering the market. Zillow says that the national rate for a thirty-year fixed interest loan is now 5.4% and 4.79% for a fifteen-year loan. Add in the fact that the $8000 tax credit for new home buyers is slated to end on December 1st gives first time buyers every reason to shop right now.
According to Zillow, thirty-year fixed mortgage rates varied by state. Florida mortgage rates, and Georgia mortgage rates decreased the most, from 5.44 percent to 5.33 percent in Florida and from 5.42 percent to 5.32 percent in Georgia. Illinois mortgage rates, Massachusetts mortgage rates, New York mortgage rates and Ohio mortgage rates were the highest, each at 5.48 percent. Georgia mortgage rates were the lowest, at 5.32 percent. California mortgage rates were the most requested among all states.
Shopping Around For A Mortgage
Home shoppers who expect to check out property in the coming weeks should get prequalified for a mortgage before heading out. Mortgage ready buyers are much more likely to have their bid accepted by the homeowner who may have already found that not everyone interested in their home can get financing. By carrying your approval letter with them, home buyers can prove that they are ready to make a firm offer, perhaps beating out a competing offer from someone who hasn’t been qualified yet.
In this market, buyers need every edge that they can get. Though it truly is a buyer’s market, make things easy on yourself by getting prequalified now and locking in that good rate!
Adv. – If you are a first time homeowner, don’t forget that the federal government is giving to you an $8000 buying credit good through November 30, 2009. For more information about buying a home, finding a mortgage or refinancing, please visit SayLending.com.
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