L A South Bay Real Estate

Mortgage Rates At All time Historical low

Posted on 03. Jul, 2010 by Barry Brickel in Market Forecasts, real estate news, Uncategorized

In a press release from today Freddie Mac

Federal Home Loan Mortgage Corporation)released the results of its Primary Mortgage Market Survey® (PMMS®) in which “the 30-year fixed-rate mortgage (FRM) averaged 4.58 percent with an average 0.7 point for the week ending July 1, 2010, down from last week when it averaged 4.69 percent. Last year at this time, the 30 year FRM averaged 5.32 percent”.

From all the research that I have gathered this appears to be the lowest rate for the 30 year FRM since the early 1960′s. Data has not been keep that long by either Freddie Mac or Fannie Mae the chart below is from another reliable source.

National Average Mortgage Rates: Historical Data 1975 to present from Mortgage News Daily

The Blue line represents the 30 year FRM trend.

This will have a positive influence on Home Affordability as long as home prices do not continue to run up to counter act these improved rates. Local rates are now in the 4.5-4.75% range. The lower rates are due to investors unease with the European economy particularly in Greece and Spain and the sluggish US economic rebound, but local buyers can benefit.

Because of these lower rates call volume to Realtors according to my fellow associates has tripled in the past 3 weeks and inventory continues to shrink, now would be a good time to take advantage of this unexpected condition.
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Thanks again, and have a great holiday weekend.

Barry Brickel J.D.