(Washington)-a 30-year fixed mortgage loans in the average rate fell below 4% has, for the first time in history.
For a lucky few have good jobs and stable financial, this is a rare opportunity, may save the thousands of dollars each year. For most people it is a mock and reminded of his financial situation is so weak.
On Thursday, the federal home loan mortgage company said a 30-year fixed mortgage loans of the interest rate from 4.01% to 3.94%, previous low last week. Refinancing option, a 15 years of fixed loans, a popular average rate drops to 3.26%, also set a.
Mortgage interest rates lower than they in the early 1950 s. Average rate reached 4.08% for a few months, that year, according to the national bureau of economic research. Although at that time of mortgage usually only lasted 20 or 25 years.
Ultra-low interest rates has not been enough to make the housing market struggles and anemia sales and house prices falling, it in recent years.
Rate has been below 5%, but in the past two weeks, the one year. This year, however, previously occupied homes sales track on the worst in 14 years. And housing ownership has fallen in the past ten years since the great depression, according to the largest amount on Thursday the 2010 census data.
Celia ChenMuDi analysis, director of the department of housing economy, said: "" considering how far, mortgage rates have dropped, we hope to see more people refinancing and buy. "It still lack of employment opportunities and difficult credit environment, promoting the most people leave."
For many americans, buy a house is in this economic risk is too big. Unemployment is over 9%, and improve the scarcity and foreclosure 1 million down the home prices.
Other do not accord with historical low interest rates. Banks insist on higher credit score. Many buyers will decline by 20% for the first time. Few people have so much cash or family assets to meet the demand.
Senior mortgage bankers in the United States, the fidelity Milwaukee mortgage bear stearns, "John said:" we refused, because of the low credit scoring application program has a huge pile, it DuoNian to have been so.
Total mortgage loan application was down more than 4% the week before, this week, according to the mortgage bankers association. Refinancing application fell more than 5%.
In Louisiana, baton rouge, mortgage brokers, mike Anderson said, a few weeks of low interest rates and no change to stop people get the loan of obstacles. There is no work, have mostly bad credit or have negative family assets. Do any of these a deal breaker.
"The same new lows, the same question," Anderson said. "You can get 800 credit score, you have to turn leave."
Mortgage rates drop, because they tend to track the 10-year Treasury note yields. In the last few weeks of yield has drop, mainly because of the American economy and European investors the debt crisis of worry. Therefore, they have their money transfer out of stock, to relative safety of national debt.
And they may further down, the fed has already began to shuffle, trying to reduce long-term interest rates, its portfolio.
A in the mortgage interest rates fall may help the economy if more people could be refinancing. When people in low interest rates to refinance their loans, and their interest and less pay have more money to spend.
Consider who owes $250000 in 30 years, is paid 5.09% of the fixed mortgage homeowners. This is in the January 2010 average growth rate. In 3.94% of the refinancing loans, can save his or her more than 2000 yuan a year.
But most people can afford to financing has been locked under 5% interest rates.
Economists say, interest rates need to drop at least one percent, again before the refinancing is meaningful. The reason is usually pay homeowners thousands of dollars, closed at cost, when they refinancing.
Provide the low interest rates and no extra cost, what say normally namely points, many borrowers must pay rate lowest. A point is equivalent to 1% of the loan amount.
Once the cost to add additional, a 30-year loan of the average interest rate is 4.12% effective, real estate beauty said.
Many of the owners are in cut these expenses, to attract more people for refinancing. And other people to provide better interest rates.
Zillow.com, a real estate web site to provide to the lender, from mortgage rates offer, has been recorded five weeks to less than 4% of the 30 years of loans. The average rate This is because the site allows lenders competition.
Zillow chief economist Stan humphries said, "this is the most people not in their lifetime again saw a chance,". "But we are in a period of interest rates to leave a period of time is very low, because it will take some economic growth, the interest rates again."
Ap business writers Marcy Gordon and Dan Wagner contributed to this report.




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