Friday, July 2, 2010

Mortgage Rates Hit Lifetime Lows

Mortgage rates have sunk to the lowest level in decades. If your current mortgage interest rate is above 5% on either investment, 2nd home, or primary residence, now is the time to find out if you qualify.

The reason rates are dropping is that investors are seeking out mortgage bonds backed by the U.S. government as a safe haven from the tumult of the global economy, a reversal of fortune that has helped drive mortgage rates for consumers to record lows.

Thursday saw a slew of downbeat data, with the Institute for Supply Management saying its index of manufacturing activity fell unexpectedly to its lowest level of the year; auto makers reporting lower U.S. sales in June; and the Labor Department announcing a rise in weekly claims for jobless benefits.

The average rate for a 30-year fixed-rate mortgage tumbled this week to 4.58%, government-sponsored mortgage agency Freddie Mac said Thursday, from 4.69% last week. That is the lowest rate since Freddie Mac started keeping track in 1971.

A refinancing wave would be welcome now, with the economy appearing to lose momentum. The housing market has been a particular source of worry. A report Thursday from the National Association of Realtors showed that pending home sales sank 30% in May from the month before, far worse than economists expected.

If you or anyone you know who wants to take advantage of these rates and secure a lower payment or shorten their term to a 15yr fixed, without seeing a payment increase, please call me today at 714-478-3153.

Tom

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