by STAFF WRITER Published August 5, 2010 Credit Unions Online
Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to another low of 4.49 percent with 0.7 points. This is another small decline from last week's 4.54 percent and well below this time last year when average 30 year fixed rate mortgages were 5.22 percent. The 15 year fixed rate mortgage average ticked up a little to 3.95 percent with 0.6 points from last week's 4.00 percent. Last year's 15 year fixed rate mortgage average was 4.63 percent.
"And yet again, interest rates for fixed-rate mortgages and now the hybrid 5-year ARM fell to all-time record lows this week following the second quarter GDP release. Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease," said Frank Nothaft, vice president and chief economist, Freddie Mac.
Nothaft continues "More recently, housing investment picked up in the second quarter of this year as the homebuyer tax credit spurred new and existing sales and low mortgage rates encouraged remodeling. Fixed residential investment added 0.6 percentage points to second quarter real GDP growth following two quarters of decline."
While many media reports claim banks are not lending money, credit unions are rarely mentioned in the mainstream media. Credit Unions have money to lend. Check with your local credit union for your mortgage loan. You will get personal service and very competitive rates. And since your credit union is local, you can talk to someone who probably lives in the same town as you. Your credit union is not going anywhere, so you can get assistance even after closing on your home.