Record Low 30 Year Mortgage Rates Fall To 4.12%
Fixed mortgage rates fell this week to the lowest levels in 6 decades.
But few Americans can take advantage of the rates to refinance or buy.
Average rate for the 30-year fixed mortgage fell to 4.12%, down from 4.22%.
The average rate on a 15-year fixed mortgage, a popular re-fi option, fell to
3.33% from 3.39%. Record-low mortgage rates have done little to energize the
depressed real estate market. Over the past year, the average rate on the
30-year fixed mortgage has been below 5% for all but two weeks. That compares
with 5 years ago, when the average 30-year fixed rate was near 6.5%.
Many Americans are in no position to purchase. High unemployment, scant wage
gains and large debt loads have kept them away. Others can’t qualify for even
the lowest rates. Banks are insisting on higher credit scores and 20% down for
first-time buyers. Many repeat buyers have too little equity invested in their
property to meet loan requirements. Low rates are great, but the real issue is
that the number of people who can get a loan or refinance is small.
The average rate on a 5-year adjustable rate mortgage was unchanged at 2.96%.
The average rate for the 1-year adjustable rate mortgage fell to 2.84%. The
lowest on record going back to 1984.
