Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to another low of 4.56 percent with 0.7 points. This is a modest decline from last week's 4.57 percent and well below this time last year when average 30 year fixed rate mortgages were 5.20 percent. The 15 year fixed rate mortgage average ticked up a little to 4.03 percent with 0.7 points from last week's 4.07 percent. Last year's 15 year fixed rate mortgage average was 4.68 percent.
[AD]These historically low mortgage rates have been declining for a couple months, resulting from the European debt crisis with investors fleeing to U.S. Treasury bonds, which are considered safer. The result - lower treasury yields and mortgage rates.
Even with these record low mortgage rates, home buyers are not returning to the market. Sales of preexisting homes fell another 5% in June, according to the National Association of Realtors. As home prices continue to decline, many potential buyers are staying on the sidelines, waiting to see if prices decline further. The housing market is expected to continue to decline, until the unemployment rate takes a significant drop.
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.