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Mortgage Rates in the USA
According to Freddie Mac, average interest rates on a 30-year fixed-rate mortgage have fallen lower than they have been since 1971. As of last week, the interest rate on a 30-year fixed-rate mortgage was just 4.57%. While some would think that these rates would encourage people to invest in new homes, realtors can't find buyers.
Industry experts believe that potential buyers are afraid that the economy will continue to languish, which could leave them jobless and unable to pay back loans. However, the housing market showed signs of improving during the first half of 2010, due in large part to an $8,000 federal tax credit for first-time home buyers. With that incentive gone now, realtors are finding it harder than ever to find buyers. On the other hand, some in the market believe that investors and home-buyers will start to see the opportunity in such tiny interest mortgage rates, which will lead to a gradual upturn in rates.
With mortgage rates in the USA at such a low level, investors have to wonder if the time to buy might just be right now.
Source: Breaking News and Sport
