Mortgage Rates at an All-Time Low – What Does it Mean?

Mortgage rates continue to fall to an all-time low, according to Freddie Mac who stated that the 30 year loan rate is 3.84 percent, which is a rate last seen in the 1950s. 

The 15 year mortgage, which is a popular choice today for those in a position to pay more and plan to stay in their homes for quite a while, is also at an all-time low of around 3 percent. Many home owners choose this refinancing option to pay off their home more quickly.

However, even though mortgage rates are low, the rate does not seem to motivate buyers.  This could be because of the newly enforced down payments that are cropping up requiring homebuyers to provide high down payments in order to qualify for mortgages.

Though more home buyers are out competing for the properties that are for sale, there are still many that are hesitant to enter the market. Especially those homebuyers that have the money and are well-informed in the real estate market. The market is too unsteady for them still.  Most of the homebuyers competing for properties now are first time homebuyers and veterans that qualify for programs that allow lower down payments.

Finding mortgage rates at a low not seen in decades seems like good news but it still may be some time before the market is back where it was in the 1990s.  There are still many great deals for the right buyers and now is just as good of a time as any if you are ready to buy.