Thursday, August 11, 2011

30 Year Fixed Rate Mortgage Falls Below 4%

Will lower rates spur purchases? Or just Re Fi's?  This Reuters artice explains why rates are dropping in context of S&P credit downgrade. And  Zillow is reporting the historic low rate of 3.92%.    

Mortgage rates have been down for a couple years now, but Charlottesville and Albemarle sales at the mid-year hovered at levels as low as a decade ago, despite rising population and thousands of new homes built.  Sales nationwide have not been boosted by lower rates.

Most recently, July 2011 sales in the "American Dream" category of the single family home plunged 42% in City of Charlottesville and dropped 43% in Albemarle County from June's sales.  These low sales came at the height of the Spring Selling Season, before the proverbial S hit the F.

30 Yr Fixed rates in the past:
In June 2007, 30 yr fixed was 6.69%
Just after this blog went online in June 2008, rates were at 6.42%
In January 2009, Mitch McConnell (R-Ky) intended to propose 4% rates as part of Economic Stimulus Bill (didn't happen).
In October 2010 rates were at the historic low of 4.16%

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