Home shoppers who are interested in making the big purchase before the end of the year are getting another opportunity to finance their new home at extremely low mortgage rates. Recent reports indicate that for the first time in four months interest rates on traditional 30-year home loans once against dipped below the 5% point. Although the drop is significant, it still does not beat the ultimate low that happened earlier this year (2009).
Mortgage provider Freddie Mac made the announcement last week, where for the first time since spring interest rates were below 5% at an astonishing 4.94%. At one point in May of 2009, the rates were recorded at 4.91%. In the beginning of the year, some homeowners locked in mortgage rates of 4.875%.
There is only one month left for those interested in buying a home to take advantage of historically low interest rates, as well as the tax incentive the Government is offering first time home buyers.
Additionally, last week the Federal Reserve announced that a stimulus program to help lower mortgage rates as a way to help stabilize the housing market is being throttled. Although there are no immediate affects expected, analysts believe that mortgage rates will increase in the future.
If you can do it, this may be your last chance to take advantage of the best house buying market in decades. Although employment statistics are still bleak, many experts have been proclaiming signs of a stabilizing economy. Once the whole system is firmly on tract, low interest rates, government incentives, and discounted properties will be a challenge to come by.
