Interest Rates Hit Lowest Mark Since 1950's
This past week, HSH Associates, who tracks interest rates reported that mortgage interest rates are the lowest they have been since the 1950's. Rates are in the low 4% range for 30 and 15 year fixed mortgage loans. This means there are additional reasons to consider purchasing now, even when the Tax Credit has expired.
In the mid 1980's, rates were 11-12% for fixed rate loans and ARM loans had just started to be introduced at rates of 8% for a 1 year arm. Amazingly there was still a strong market for new mortgage loans. It was a continual reduction of rates from that time until now, with the occasional uptick. Many buyers now cannot imagine interest rates above 7%. As shown in the chart below, we have been floating in that range for a few years:
So what do these low rates mean exactly?
If you have been considering purchasing and are sensitive to interest rates and getting the lowest fixed payment, now is definitely the time to check out your options. If your equity is good and you are still debating whether or not to take advantage of refinancing, I would recommend speaking with your mortgage consult to learn more about any benefits you may be missing out on.
Conventional wisdom says these rates cannot continue indefinitely at these low levels.