Freddie Mac said Thursday that the Average Rates for the 30 year fixed dropped to 4.78% this week, down from 4.85% last week.
This is the lowest lending rate that Freddie has seen since 1971, or when they started the survey. This puts rates down a full point since this time last year.
The low rates have triggered a tidal wave of refinancing activity. The MBA said Wednesday that its “Weekly index climbed 3% for the week on top of a 30% increase from a week ago.”
Lenders however have also tightened lending requirements, so these good rates wont apply if you have bad credit.
For many Loan Shopping/ Home Buyers out there, this should be the question you ask yourself.
Are you still holding off on buying your dream home, because you think prices are still going to continue to drop 5%? Well, you should consider what price money will be at by the time the bottom is clearly in sight for everyone. Will they continue to cut rates when it is obvious that the market is climbing back on its feet?
In other words, is waiting 6 months for prices to drop 5% worth the risk of having rates go back up and costing you more in the long run?
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