Record Low Mortgage Rates

Average rates for 30-year fixed mortgages fell from 4.22 to 4.12 percent according to Freddie Mac last Thursday. This represents the lowest recorded level since 1971.

The 15-year fixed rate dropped to 3.33 percent from 3.39 percent which is the lowest since 1991.

The reason for this drop can be attributed to the yield on the 10-year Treasury note which recently fell to an all-time low caused by investors moving from stocks to the safety afforded by the Treasury.

Despite what under normal circumstances would be considered good news for those who want to purchase a home, most people won’t capitalize on these historically lower rates due to tight lending standards, unemployment, and an overall lack of confidence in the economy

Sales of new homes are on track to close out 2011 at the lowest on record going back almost 50 years while re-sales will have their worst year since 1996.

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