Rates for 30 Year Loans Drop
Monday, September 21, 2009 at 10:21pm
Homeowners with 30-year loans (and looking to refinance) have been seeing some good news this past month concerning loan rates. For the past three weeks in a row now, rates for 30-year home loans have dropped to 5.04 percent. A small, but substantial, change from last week's rate of 5.07 percent. The decreasing rate is a slight victory for homeowners looking to refinance their home in the hopes of saving some money. Freddie Mac reported that the mortgage rates may even hit the record-low numbers from this past spring when it dropped to 4.78 percent.
The Federal Reserve may have something to do with the shrinking home loan rates. They have been currently pumping in $1.25 trillion in mortgage-backed securities (MBS) to help the housing market recover from the worst recession it has seen since the 1930's. The amount looks as if will be completely spent by winter, although there has been speculation that the central bank may add more funding at a later time.
Although the government is trying to help out as much as possible, it is still difficult to quality for a loan. Lenders, who are now more cautious than ever, have become very stiff with their standards regarding qualification. The best example of someone who is going to qualify for a home loan today? A person with a stable credit history and a 20 percent downpayment. This hasn't changed much over the years, but the flexibility to "work around" these circumstances has now disappeared.
However, the opportunity that the current 30-year rate decrease has opened for certain homebuyers is much-needed break. It remains to be seen if, in the following weeks, the rate continues to drop to under 4 percent.
With this rates so low visit our
Foreclosure Page and find the best deals in homes right now, or visit our
Communities page and learn about the best areas around Central Florida.
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