Mortgage rates sink to lowest level on record (lowest since 1971)

AP on Yahoo ^ | 6/24/10 | Alan Zibel - ap

[NormsRevenge]

WASHINGTON – Mortgage rates fell this week to the lowest level on record, giving consumers added incentive to lock in low payments on home purchases and refinancings.

Mortgage company Freddie Mac said Thursday that the average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week.

That's the lowest since Freddie Mac began tracking rates in 1971. The previous record of 4.71 percent was set in December. Rates for 15-year and five-year mortgages also hit lows.

Mortgage rates have fallen over the past two months. Investors wary of the European debt crisis and the turbulent stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasury debt.

[nascarnation]

I’m still a believer in inflation ahead.
I think these rates locked for 30 yrs are a screaming deal.

But I have to admit there are more deflationary signs cropping up.

This isn’t for the faint of heart.

[Mariner]

And I'm still thinking deflation...at least through the mid-term (2-4yrs).

You can lose BUNCHES on a house in the time period...and dollars cash can get real valuable.

Of course, I think it's safe to say NOBODY knows with any certainty what the economic future brings.

[Rational Thought]

It has to be noted that while base rates are at record lows, most borrowers will not get these base rates due to all the “add ons”.

For most, the rate would likely be the same as 6 months ago if not higher.

[NormsRevenge]

anything under 5% is a win win.. jmo

[Alberta's Child]

I think anything under 5% is a great deal -- but only if you are refinancing an existing mortgage and are well within your budget when it comes to making those payments.

Home sales dropped into the gutter last month, which is an indication that prices are still likely to drop substantially. Getting a 4.8% fixed rate on a 30-year mortgage sounds great, but not if it involves a large principal on a current purchase of a home that may soon be worth less than the mortgage balance.

[WOBBLY BOB]

I’m tempted to refi but hate the arduous process . Not sure it’s worth it to refi for a 1 percentage point drop from
5.25.

[2harddrive]

They are low, because NOBODY is buying houses! Yet, one cannot push on a string.