30 year fixed rate is now 4.72% but not low enough!
Related Posts: Credit & Finance, Mortgage Money
hiThe average rate on 30-year, fixed mortgages is near a record low again, but that may not be enough to bring lots of buyers into the market. Freddie Mac says the average for a 30-year mortgage is 4.72 percent. But….. the Mortgage Bankers Association reported this week that the volume of new mortgage applications for buying homes & refis fell to a 13-year low. How could you refinance if you are underwater on your mortgage. Sources say 24 percent, of all homes with a mortgage were worth less than the outstanding loan balance at the end of March. And then others can’t refinance because their credit has been damaged by missing payments due to lost income as a result of the recession.
The volume of mortgage applications for purchasing homes is down again over the last month because many buyers left the market after a homebuyer tax credit expired at the end of April. The federal tax credit provided up to $6,500 for repeat buyers and up to $8,000 for first-time homebuyers. The tax credit did boost sales. Pending home sales moved upwards consistantly with the credits in place.