Mortgage rates hit a record low last week on increasing worries of a second recession. The average conforming 30-year fixed mortgage rate dropped to 4.75%.
The last time mortgage rates were above 6% was in November 2008. At that time, the average rate was 6.33%, which meant a $200,000 loan would have carried a monthly payment of $1,241.86.
At today’s rates that payment would be $1,043.29, or a savings of $198 a month. Mortgage rates are closely related to yields on long-term government bonds, which have been in demand on increasing worries about the health of the global economy according to bankrate.com
“But despite the tremendous affordability brought about by record low mortgage rates and a sharp drop in home prices, consumers are reluctant to take the plunge into homeownership,” the group said.
So how many of the people you know will be passing on this once in a lifetime opportunity. These are record low interest rates. Actually they are now at lifetime lows. If you are renting, don’t….go buy something. If you’re in San Diego, call me. ( or anywhere else for that matter, I’ll still be able to help you.
More tomorrow!
Alan