For the first time since early spring, mortgage rates have fallen below the 6-percent threshold. Freddie Mac reports that 30-year fixed loans came in at an average of 5.93% last week, down from 6.35% a week earlier and 6.31% at the same time last year.
A borrower taking out a $200,000 mortgage at 5.93% would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on the previous week’s rate. “Consumers see a five in front of mortgages, and they get excited,” says Keith Gumbinger, a vice president at research firm HSH Associates.
It is certainly refreshing to see mortgage rates below 6%, but we wonder if that will be enough to spur home buyers to take the leap during a possible credit market collapse; I’m not that apt to leap in just yet.
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