Mortgages becoming very low interest loans

Davis Mansion

Low mortgage rates doesn't mean you can get a mansion for pennies, but you can score a sweet deal with low interest loans. Image from Wikimedia Commons.

If you’re looking at buying a home, right now is the time to do it. There are, unfortunately, a lot of foreclosed properties on the market at discounted prices. Not only that, but a lot of people are looking to sell. There is also a lot of inventory to move. As luck would have it, mortgage interest rates for 30 year fixed mortgages are at an all time low. So if you want to get low interest loans for a home, now is the time. You may never even need mortgage modification at prices this low.

Mortgage rates hit record low

Currently, the interest rates on 30 year fixed rate mortgages are at the lowest point they have ever been on record. Freddie Mac has kept track of the data since 1971, and the current market interest rate for 30 year mortgages dropped this week to 4.36 percent from 4.42 percent, according to Bloomberg. Granted, these are low cost loans compared to several years ago, but the rates are not exactly on short term loans. After all, it is for a 30 year mortgage. The rate for 15 year fixed mortgages is at 3.86 percent. At this rate, 30 year mortgages will be at that rate by Thanksgiving.

Plenty of inventory to move

As of right now, there is a greater supply of homes on the market than there has been since 1983. The real estate market has a 27 year all time high supply of homes for sale. However, that usually means that fewer people are buying. According to Reuters, home resales are at a 15 year low, and more people are getting refinancing if they can. The unfortunate corollary to all this is that getting credit from money lenders is harder than ever, and the era of unchecked loans for bad credit for purchasing a home is completely over.

Buy low and sell high

However, if you have the credit and a down payment ready, this is the time to buy. In the right area, you could actually get into a sweet house for half the cost you normally would pay. At these rates, you may never need to refinance or even have to think about mortgage modification.

Further Reading

Reuters

Bloomberg

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