Mortgage Rates Fall Again–Where Will They Stop?
We’re seeing some pretty amazing developments in the mortgage industry these days. It is being reported that rates for 30-year mortgages just hit a new low of 4.01 percent. That’s being described as a “historic low” and there’s some expectation that rates may have room so slide even further south. Rates for 15-year mortgages can be found for 3.28 percent.
While low mortgage interest rates are great news for buyers, the glut of inventory on the market and lousy economy is still keeping things sluggish. I see the same old “For Sale” signs in my region week after week and very few “Sale Pending” or “Sold” signs in comparison. Some of my real estate contacts tell me that it’s lower-priced homes that are moving, while higher-priced homes are languishing on the market for much longer periods of time. If you’re trying to sell a home for $125,000, you have a far better chance of attracting a buyer than someone selling a home for $200,000.
I guess it’s a great time to be a first-time home buyer with a nice chunk of savings in the bank.
Whether or not these historically low interest rates help to revive the market is something we are just going to have to wait and find out. This lousy economy has been dragging on now since 2008, and although some government officials boldly proclaim that the recession ended a year or two ago, people standing in the unemployment line or who are receiving foreclosure notices in the mail know better. This recession, or perhaps we should be calling it a depression, is still going strong and as much as we’d all like to see a light at the end of the tunnel, it just doesn’t seem to be there yet.
At this point, one might wonder if a light at the end of the tunnel is a little ray of hope headed our way or a freight train bearing down on us that will only make things worse.
So far, these low mortgage rates seem to be doing little beyond providing fodder for news organizations and bloggers like myself. There are just too few people with the money it takes to go out and buy a home. Add to that the new and tighter requirements that lenders have put in place and it’s easy to see why there’s not all that much buying going on.
They can drop the interest rates to 1 percent if they want, but if people don’t have jobs or the money to make mortgage payments it’s hard to imagine things getting much better.