30-Year Mortgage Rate Falls To Nearly 4% Average

One month ago the rate for a 30-year fixed mortgage hit a record low just below 4% and now according to mortgage provider Freddie Mac mortgage loans are hovering right near the 4% market as an average base for lending.

Freddie Mac says the average secured mortgage loan now sits at just 4.10% while the average 15-year fixed mortgage rate is now just 3.31%, down from 3.38%.

News of the lower rates comes as the Federal Reserve has push down the rates on 10-year Treasury notes which allow rates to lower for lending institutions.

The Feds have slowly been pushing the cost of the notes down to help spur home sales through cheaper lending however high unemployment rates and declining wages for employees have made it harder for many buyers to qualify for loans. Other home buyers are worried that home values will continue to decline leading to a loss of value in their homes over the next three to four year period.

According to recent home buyer numbers October is on track to be the worse sales month for previously owned homes in the last 13 years. One saving grace for the housing market was an increase in new home sales which rose in September after four months in free fall thanks to contractors who have lowered their asking prices to quickly offload empty properties.

For buyers looking to take advantage of a five-year adjustable loan those rates have also fallen to just 2.96%. Meanwhile a one-year adjustable loan is now averaged at just 2.88%.

It should be noted that the average fees listed above do not including “points” which can be purchased by a borrower to lower their rate even further or extra fees that are often tied into the purchase price of a home.

Do you plan to take advantage of lower than normal lending rates to purchase or refinance a home in the near future?

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