Presenting The Lister Sisters!

The average interest on a 30-year mortgage fell to a 38-year low of 4.85 percent during the week ending March 27 from 4.98 percent the prior week, Freddie Mac reported.

The decrease came on the heels of the Federal Reserve’s announcement that it plans to purchase another $750 billion in mortgage-backed securities and up to $300 million in Treasuries. President Obama says refinancing is now possible for 40 percent of mortgages and encourages home owners to reap the benefits of the record-low rates.

Tags: First time home buyer, Freddie Mac, interest rates, low mortgage rates, Mortgage, mortgage bail out, mortgage rates

What this means for you:

Buyers -

Lower rates boost your
buying power

When rates drop 1%, you can buy
almost 10% more home in price.

Sellers -

Lower rates boost home
affordability, bringing more home buyers
into the market

Home affordability is at its highest in the
Twin Cities since 1990, according to the
Minneapolis Area Association of Realtors®.

Owners -

Lower rates could mean
lower monthly payments

Consider refinancing into an FHA mortgage,
which can be assumable to a buyer when
you sell your home.

Tags: low mortgage rates, mn mortgage rates, Mortgage

Daily Real Estate News | January 16, 2009 |

30-Year Rates Fall Below 5 Percent
Mortgage rates dropped to their 11^th straight weekly decline, reaching new record lows, according to Freddie Mac.

Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week’s 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates.

“The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures,” says Lawrence White, professor of economics at New York University’s Stern School of Business.

Other rates were mixed for the week:

15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.

1-year adjustable rate mortgages: fell slightly averaging 4.89 percent from 4.95 percent last week.

5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.
Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae—the government-sponsored enterprises.

Freddie Mac started recording mortgages in 1971.

Source: Reuters, Julie Haviv (1/15/09)

Tags: buying a home, low mortgage rates, Mortage, mortgage rates, real estate