According to the National Association of Realtors, fixed-rate mortgages hit new all-time lows last week for the second week in a row, as reported by Freddie Mac in its weekly mortgage market survey. This drop in rates has been mostly attributed to the recent decision made by the Federal Reserve to buy up $40 billion of mortgage-backed securities each month, and Freddie Mac reports the following national averages with mortgage rates for the week ending October 4, 2012:
A 30-year fixed-rate mortgage averaged a new record low of 3.36%, with an average 0.6 point, dropping from the previous week’s record of 3.40%. A year ago this time, 30-year mortgages averaged 3.94%.
A 15-year fixed-rate mortgage averaged a new record of 2.69%, with an average 0.5 point, dropping from the previous week’s record low of 2.73%. Last year at this time, 15-year rates averaged 3.26%.
With fixed mortgage rates hitting record lows for two consecutive weeks, current market conditions present a favorable time for potential home buyers to consider purchasing new homes for sale while the low rates last. Homeownership can be a rewarding investment both personally and financially, and those looking to buy in new home communities in Birmingham, AL, have the opportunity to take advantage of low mortgage rates before both home prices and rates rise begin to rise higher.