Mortgage Rates Drop Below 3%
- katerinatristan
- Jun 1, 2012
- 1 min read
Mortgage Rates Drop Below 3% on 15- year Mortgages
Freddie Mac announced this historic low on Thursday. The average fixed rate loan for a 15 year mortgage was 2.97% which is a historic low.
The average 30 year mortgage loan also hit a historic low dropping to 3.75%.
This is great for first-time home buyers who have struggled in past years to get into a home. As the prices start to rise like they are home buyers can still find affordable homes because of the low interest rates.
If you are paying like $1400 a month in rent you can get a home for less than $1000 per month in a mortgage payment. This is the time that buying is better than renting from just the financial savings part of the benefits to home ownership.
That $1000 would cover your mortgage interest and principle, your taxes and insurance and your HOA fees in many of today's starter homes! This is a good time to buy!
Freddie Mac said that the rates dropped because of the problems in Europe's economy. The problems there have led to long-term treasury bonds falling.
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