Monday, April 8, 2013

30-year Fixed Mortgage Rates Once Again Dropping Near Record Lows

Home prices in Crow Wing County may be increasing, but mortgage interest rates are not. The average rate on a 30-year fixed rate mortgage dropped once again last week getting closer to its historic low. According to mortgage buyer Freddie Mac the average rate last week for a 30-year fixed rate loan dropped down to 3.54 percent from 3.57 percent the week prior.  These interest rates are inching closer and closer to the historic rate of 3.31 percent that was reached last November. The average mortgage rate is figured based of a survey done by Freddie Mac of lenders across the country each week. The rates do not include any extra fees which are commonly known as points. One point would be equal to 1 percent of the loan amount.

15-year fixed mortgage rates also declined last week to 2.74 percent down from 2.76 percent the week prior. The lowest mortgage rate for a 15-year fixed rate loan was also reached last November at 2.63 percent.

Continued low mortgage rates have helped with the housing recovery we are now experience after the housing bubble burst more than six years ago. The number of home sales, new construction, and home prices are all up over numbers from last year. In February we saw the sale of previously owned homes reach its highest level in more than three years, another indicator of a strengthening housing market.

There continue to be some people who are not able enjoy the benefits of a low mortgage rate due to not being able to quality for a loan as a result of new stricter lending rules, or due to lack of savings needed for a larger down payment that is now required.

If you are looking to buy or sell a home in Crow Wing County this spring,  contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.

Bill Grunewald/ Edina Realty.

Licensed in Minnesota/ Lic # 20204156