Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to 4.69 percent with 0.7 points. This is a decline from last week's 4.75 percent and well below this time last year when average 30 year fixed rate mortgages were 5.42 percent. The 15 year fixed rate mortgage average was 4.13 percent with 0.7 points, another decline change from last week's 4.20 percent. Last year's 15 year fixed rate mortgage average was 4.87 percent.
[AD]“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed mortgages in September 1991 and 5-year hybrid ARMs in January 2005. The record low for traditional 1-year ARMs of 3.36 percent occurred during the week of March 25, 2004.
Not only are mortgage rates near all-time lows, but home sales are at historic lows as a result of the tax credit expiration. If you are in the home for a new or existing home, you can likely negotiate a price down far enough to compensate for any tax credit you would have received if you had purchased a few months ago. With demand at these historic lows (unlikely to last too long), you might be the only person considering making an offer on that dream house you found. Do the math and make an offer that allows your to feel like you got the tax credit and see how the seller responds. You just might walk into a new (or existing) home at a great deal, without any government assistance.
Credit Unions have money to lend. Check with your local credit union for a 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.