Freddie Mac's Primary Mortgage Market Survey (PMMS) indicates average 30 year fixed rate mortgages dropped to another low of 4.21 percent with 0.7 points. This is an increase from last week's 4.19 percent and below last year's rate at the same time when average 30 year fixed rate mortgages were 5.00 percent. The 15 year fixed rate mortgage average a new low at 3.64 percent with 0.7 points from last week's 3.62 percent. Last year's 15 year fixed rate mortgage average was 4.43 percent.
[AD]Even with these historically low mortgage rates, home buyers are not entering the market at a rate that will lead to a recovery. Fall and winter months usually have lower home buying activity, so any recovery is not expected until the spring of 2011, at the earliest. Low mortgage rates are finally starting to stimulate refinancing activity to a meaningful level with a 21 percent jump in applications to refinance.
Congress has shown no signs of anymore home buying incentives, so if you are on the fence waiting, now could not be a better time, especially if you are a first time home buyer. Prices are low and mortgage rates are excellent. Stop by your local credit union and get started on the path toward homeownership. You will thank yourself after the housing market recovers leading to higher mortgage rates and home prices. If you buy before the recovery, your home investment will very likely increase in value, giving you better purchasing power if you trade-up down the road.