Now is the time for buying a home. There are, sadly, a lot of foreclosed properties on the market at discounted prices. . There is also a lot of inventory to move. As luck would have it, mortgage interest rates for 30 year fixed mortgages are at an all-time low. So if you would like to get low interest loans for a home, now is the time. Also, right now is a good time to take a look at mortgage modification.
Record low rates for mortgages
Currently, the interest rates on 30 year fixed rate mortgages are at the lowest point they have ever been on record. Freddie Mac has kept track of the data since 1971, and also the current market rate of interest for 30 year mortgages dropped this week to 4.36 percent from 4.42 percent, according to Bloomberg. The low cost loans are in comparison to just a couple of years ago, although they aren’t short term cash loans. We are considering a large mortgage. It is for 30 years. The rate for 15 year fixed mortgages is at 3.86 percent. 30 year mortgages will hit that rate by Thanksgiving if they continue.
Inventory to move
You will find a lot of homes needing to be sold. In fact, it hasn’t been this bad since 1983. The real estate market has a 27 year all time high supply of homes for sale. However, that typically means that fewer individuals are purchasing. There is right now a 15 year low that was hit on homes being sold. The majority are also refinancing, reports Reuters. The unfortunate corollary to all this is that getting credit from money lenders is harder than ever, and also the era of unchecked loans for a bad credit score for purchasing a home is completely over.
Purchase cheap and sell expensive
You need to buy now though when you have credit and a down payment. You can get a fantastic deal out of homes right now. Houses sell for half what they are worth. At these rates, you may never have to refinance or even have to consider mortgage modification.
Additional reading
Reuters
reuters.com/article/idUSTRE67P30X20100826
Bloomberg
bloomberg.com/news/2010-08-26/mortgage-rates-for-30-year-loans-decline-to-record-4-36-freddie-mac-says.html
