Mortgage Rates Set Another Record Low

Mortgage Rates 12-7-09Mortgage interest has fallen to the lowest level since Freddie Mac began compiling its weekly survey in 1971, as the average 30-year fixed rate declined to 4.71 percent last week from 4.78 percent a week earlier.

Mortgage rates were also more attractive for 15-year fixed loans, which fell from 4.29 percent to 4.27 percent, but consumers may have difficulties qualifying for these loans as lenders now demand higher credit standards.

The Mortgage Bankers Association’s index of application demand, which rose 2.1% on a seasonally adjusted basis during Thanksgiving week from the previous week, shows that consumers were looking to take advantage of mortgage rates at a historic low. I am actually surprised that more homeowners did not take advantage of the opportunity to refinance their existing mortgages.

Honestly, once China decides to stop funding our coffers, these rates will be a far distant memory.