Mortgage Rates Fall Again

Posted by Ryan Shilow on Thursday, August 18, 2011 at 4:37 PM By Ryan Shilow / August 18, 2011 Comment

Mortgage rates fell to near record lows which is great news for the privileged few who can afford to buy or refinance a home. In spite of this the American housing market continues to falter.

A recent Freddie Mac survey has the average rate for a 30-year fixed mortgage falling from 4.39% to 4.32%. 30 year loans hit an amazing record low of 4.17% towards the end of November.

Also making good news are 15-year fixed mortgage's which are a widely popular financing alternative. They have also fell from a record low of 3.54% to a new record low of 3.50%.

Traditionally mortgage rates will tend to follow the yield on the 10yr Treasury note. A beat down US economy has led investors to shift large chunks of money from stocks to bonds which are generally seen to be safer bets, pushing the Treasury Yield to historic lows. There is no time to buy like now.