30 Year Mortgage Rates Near All Time Lows

Yes, 30 year mortgage rates are near lows, but the all time low was in April. Yet  5.06 percent isn’t too far off the scale. 30 year mortgage rates fell at an all time low last April when they hit 4.81 and in May at 4.86, but now rates are sitting tight at 5.06 percent. The Federal Reserve is mainly responsible for the low mortgage rates. The Fed bought mortgage-backed securities this year which lowered the rates. Their plan is to slowly let up on buying these securities by next spring to bring rates back up. But a year ago before the government got involved with house buying, the mortgage rate was set at 6.32. The Federal Reserve has gotten more involved with buying homes through Freddie Mac and Fannie May to lower interest rates.

Low mortgage rates have encouraged and balanced the sales on housing this year. For current homeowners refinancing is also a desirable option on the market. Several people are turning to refinancing during these hard times as a draw to save money and lower monthly payments. However refinancing does not apply for everyone, one must make sure their listed house price isn’t dropping, their credit allows this to be possible, and their income is high enough to pay for refinancing. Lenders have become stricter in their standards, allowing for only a twenty percent down payment and a concrete credit score.

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