Average US rate on 30-year mortgage falls to 3.59 pct.
Source: AP-Excite
WASHINGTON (AP) Average long-term U.S. mortgage rates fell this week, resuming their downward trend of this year after rising slightly last week. Rates are near historically low levels.
Mortgage company Freddie Mac says the nationwide average for a 30-year mortgage declined to 3.59 percent from 3.66 percent last week. The average rate is at its lowest level since May 2013.
The rate for the 15-year loan, a popular choice for people who are refinancing, eased to 2.92 percent from 2.98 percent last week.
A year ago, the average 30-year mortgage stood at 4.23 percent and the 15-year mortgage at 3.33 percent. Mortgage rates have remained low even though the Federal Reserve in October ended its monthly bond purchases, which were meant to hold down long-term rates.
In this Jan. 8 2015 photo, real estate agent Sam Golkar enters a house being offered for sale in Cupertino, Calif. Freddie Mac reports on average U.S. mortgage rates on Thursday, Feb. 5, 2015. (AP Photo/Marcio Jose Sanchez)
Read more: http://apnews.excite.com/article/20150205/us--mortgage_rates-3db26008fc.html
we can do it
(12,190 posts)Orrex
(63,220 posts)And to think I was freaked out signing our 20-year mortgage back in '03.
bullwinkle428
(20,629 posts)way I'd think about any mortgage beyond 15 years!
we can do it
(12,190 posts)That way if something came up we wouldn't have a huge payment. Same effect with a built in safety plan.
Roland99
(53,342 posts)Lot of new developments going in around us with floorplans better suited for us but it would mean not being next door to the kids' friends anymore and that means more than a few closets or kitchen islands.
Still...
Earth_First
(14,910 posts)We're 35 and 36...it's a smart move at this rate.
Munificence
(493 posts)however I am "torn" a bit.
Seems we "buy a payment" in this day and age and once we go into a full housing recovery where rates go back up to 5-7% then it will be hard to sell your place.
Case in point is that I purchased a $300K property at 4%, my payments are right around $1250. That same house at 6% interest rate would see the same payment of around $1600 a month.
In this case if rates go back up and people purchased "too much home" and need to sell then it may be tough.
All those looking to buy a home now (which is a good idea) I'd go modest vs what you can afford in a monthly payment as when rates go back up you should expect home prices to come down...because most tend to buy a "monthly payment". Watch yourself.
Man I can remember the days of 14-18% home loans in the 70's/early 80's! That is why we had so many "modest" family homes vs McMansions.
After opening my e-cig shop. iv been pouring all my money into paying off my house. i figure if i ever become poor atleast ill have a roof over my head lol