The rates on 30 yr. home mortgages dipped down a bit this week and remain close to the record low levels reached earlier this year.
Down form 5.14%, the average rate of a 30 yr. fixed mortgage came in at 5.08%. The record low for this mortgage was at 4.78% recorded earlier this spring. Mortgage giant Freddie Mac reported these percentages on September 3rd.
In an effort to help the economy recover, the Federal Reserve is investing one point two five trillion dollars into mortgage backed securities. This effort has helped keep mortgage rates down and in turn make home loans more affordable. At the current rate, the money being invested is set to run out by this winter, yet analysts state that current spending could be scaled back to make the money go further.
Even though the government has stepped in to assist with the mortgage market, it is still more difficult than ever to qualify for a home loan. Lending institutions across the nation have tightened up their standards and now more than ever, a high credit score coupled with as much as a 20% down payment are needed to qualify for the best loan terms.
Here is a breakdown of other loan rates for the week:
15-year fixed rate mortgage dropped from 4.58% down to 4.54%
5- year ARMs dropped from 4.67% to 4.59%
1- year ARMs dropped from 4.69% down to 4.62%
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