Fixed rate mortgage loans drop even further, now under 4.50%
Jun 2011 09

If you have an accepted offer on a new home but haven’t locked in your mortgage rate, yet, you’re in luck. Fixed rate mortgage loans are cheaper than ever.

The average 30-year, fixed mortgage rate dropped again during the past week, down from 4.55% on a national basis to 4.49%, according to the Freddie Mac weekly survey of loan providers.

The 30-year fixed-rate mortgage (FRM) averaged 4.49 percent with an average 0.7 point for the week ending June 9, down from last week when it averaged 4.55 percent. Last year at this time, the 30-year FRM averaged 4.72 percent, so continued good news for buyers, almost a full quarter of a point.

A $400,000, 30-year, fixed-rate mortgage at 4.49 percent would run you approximately $2,024 per month in loan repayments. This is $15 less per month when compared to weeks ago and $55 in monthly savings compared to last year.

Frank Nothaft, vice president and chief economist at Freddie Mac says, “Long-term Treasury yields moved lower following a weak jobs report and mortgage rates followed suit. The economy added 54,000 jobs in May, the fewest in eight months, and factories cut payrolls for the first time in seven months. As a result, the unemployment rate rose to 9.1 percent, representing the highest rate since December.

“The housing market continues to be fragile across the nation as well. In its latest regional economic review released June 8th, the Federal Reserve Board indicated that residential sales and home prices showed continued weakness in most Districts.”

What a situation. Low, low interest rates that should be encouraging buyers to make purchases of new homes. An economy that keeps them from doing so. Sellers who are sitting on properties that are either not worth what they paid or that they can’t get anyone to buy.

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