Mortgage rates return to record lows
Posted on Monday, September 24, 2012 at 9:00:49 PM
Interest rates for residential financing are dropping back to record lows. According to the Freddie Mac Primary Mortgage Market Survey, fixed mortgage rates are at or near their all-time lows, which is helping keep housing affordability high.
"Following the Federal Reserve's announcement of a new bond purchase plan, yields on mortgage-backed securities fell bringing average fixed mortgage rates to their all-time record lows which should aid in the ongoing housing recovery," said Frank Nothaft, vice president and chief economist at Freddie Mac.
According to the survey, the average 30-year fixed-rate mortgage was at 3.49 percent for the week ending on September 20, 2012. The shorter loan term mortgage option, which extends for 15 years, has an average of 2.77 percent - a new record low.
Short low interest mortgage rates will help keep home financing options affordable for many potential property buyers. As people debate their fiscal stability and whether homeownership is the right housing opportunity for them, low mortgage rates may help prompt them to check out local MLS listings.