The 30-Yr. Mortgage Rates Heading To All Time Lows

The chart in this report is from the Bankrate.com, which shows how the 30-year mortgage rates have been doing since October of 2004. It's clear that after touching their all time low in May of 2009, the 30 year fixed rates are coming toward the same location.

What makes it interesting is that Fed had recently indicated that it will gradually end the purchase of the mortgage backed securities, which had helped greatly, along with the 8,000 dollar first time home buyer tax credit, to keep the current mortgage rates at historically low leveles. In fact The 30 year average mortgage rate at Freddie Mac fell below the 5 percent to 4.94 last week. The record all time low at the Freddie Mac has been 4.78 percent.

Yet, we need to remember that the fall in today's mortgage rates mean something only for those who have good credit and that their credit has not been damaged during the past financial crisis. As getting new mortgages has been very difficult to obtain, unless you have a good credit it's very hard to get a mortgage. Borrowers have become smarter and don't want to repeat the mistakes that has put them in the same trouble as the recent financial crisis has due to the fact that people could just get jumbo mortgages even without putting any money down.

To get a more precise picture of today's mortgage rates the best thing to do is to contact your local home loan provider. The current interest rates on 30-year or 15-year mortgage will vary not only from state to state, but also from city to city. It also depends who is the lender or who has done the survey.

For example, last week, it was the first time sine the all time lows of May 2009 that Freddie Mac reported its national average results starting at 4. Yet, last week, when the Mortgage Bankers Association announced its numbers on mortgage applications the rates were just under 5 percent.

Also, as you can see in this chart from the Bankrate.com the all time low was achieved in May 2009. However, at Freddie Mac the all time low mortgage rates were recorded in April, which for the 30-yr fixed loans fell to 4.78 percent. The company started its survey of tracking the national averages of mortgage rates in 1971.

Today's mortgage rates at Wells Fargo show the 30-yr fixed rate at 4.87 percent. The same rate with FHA is at 5 percent even. The 15-year fixed rate is currently at 4.37 percent.

Written by Armen Hareyan
HULIQ publisher