Mortgage Rates Hit Another Low

August 19, 2011

If you have the means to invest in Chicago real estate, or any real estate for that matter, the time to buy is now.

Mortgage rates have hit another record low, posting their lowest rates in more than 50 years.

According to Freddie Mac‘s Primary Mortgage Market Survey, the average 30-year fixed-rate loan plummeted down to 4.15 percent for the week ending August 18 after averaging 4.32 percent last week. The previous record low was 4.17 percent set during the week of November 11, 2010.

The 15-year fixed-rate mortgage averaged 3.36 percent this week, down from 3.5 percent last week.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08 percent this week, down from last week when it averaged 3.13 percent.

The 1-year Treasury-indexed ARM averaged 2.86 percent this week, down from last week when it averaged 2.89 percent.

“The Federal Reserve’s policy statement last week and ongoing market concerns over the European debt market carried momentum into this week allowing all mortgage products in our survey to reach all-time record lows,” said Frank Nothaft, vice president and chief economist, Freddie Mac.

“Not surprising, many homeowners took advantage of this low mortgage rate environment and have already refinanced their loans. The refinance share of applications averaged nearly 70 percent of all mortgage activity in the first half of this year, according to our survey. In addition, an increasing share of refinancing borrowers chose to shorten their loan terms during the second quarter, according to Freddie Mac’s Quarterly Product Transition Report.”

Mortgage rates are lows; home prices are low; inventory is high. A housing market that real estate investors dream of is currently a reality.

Categories: Economy

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