Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to 4.57 percent with 0.7 points. This is the same as last week's 4.57 percent and well below this time last year when average 30 year fixed rate mortgages were 5.14 percent. The 15 year fixed rate mortgage average ticked up a little to 4.06 percent with 0.7 points, down modestly from last week's 4.07 percent. Last year's 15 year fixed rate mortgage average was 4.63 percent.
Record low mortgage rates have yet to push home buyers into the market. Even refinancing activity is up only modestly. Since the end of the tax credit, home sales have dropped significantly with many economists saying that jobs need to recover before home sales pick up again. The bad job market has led to more American's with damaged credit. Getting a mortgage with bad credit could prove next to impossible in this tightened lending market.
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.