The average interest rate on mortgages in the United States has hit a new record low. According to mortgage purchaser Freddie Mac, the interest rate on 30-year home loans is now 3.84 percent. The rate on 15-year fixed-rate home loans is only 3.07 percent. The interest rates are the lowest on record since long-term mortgage loans began being sold in the 1950′s.
Additional fees, or points, are also normally required by lenders in order to receive the lowest interest rates. One point is one percent of the amount borrowed. On average, lenders are currently charging about 0.8 points for a fixed-rate 30-year loan and .07 points for a fixed-rate 15-year loan. The interest rate for one-year adjustable rate mortgages is currently down to 2.7 percent with a fee of 0.6 points.
Since December 2011, fixed mortgage interest rates were under four percent every week except one. The historically low rates are likely to drive up home sales and also encourage current homeowners to refinance. Although Boston has experienced increasing sales in the residential real estate market, this is not necessarily the case in many cities as home prices continue to fall in some markets. In fact, homeownership across the nation recently reached a 15-year low. Currently, only 65.4 percent of U.S. households own the home they reside in. The nationwide housing market still appears to be looking up, however, as homeowner and rental vacancies dropped during the first three months of 2012. During the first quarter of this year, foreclosure filings were also at their lowest rate since 2007.
Mortgage rates generally track 10-year Treasury notes. As wary investors purchase more of the safer Treasury notes, the yield on their investment will be lower. Freddie Mac calculates the average mortgage interest rate based on a weekly nationwide lender survey. If you would like to take advantage of historically low interest rates and buy a new home or sell your existing home, a skilled Boston real estatelawyer can help. By contacting a Massachusetts real estate attorney early on in the buying or selling process, you may be able to more fully protect your financial interests.
Contact Pulgini & Norton, LLP today if you are considering buying or selling property in Massachusetts. Our hardworking Hyde Park real estate lawyers are available to help you negotiate your sale or purchase and handle any unforeseen issues which may arise during your property transaction. At Pulgini & Norton, our attorneys represent clients throughout the Commonwealth of Massachusetts including Middlesex, Norfolk, Bristol, Suffolk, and Worcester Counties. To speak with a knowledgeable real estate lawyer today, call Pulgini & Norton at (888) 344-2046 or contact our capable lawyers through our website.
Bidding Wars on the Rise in Greater Boston Residential Real Estate Market, Massachusetts Real Estate Lawyer Blog, April 27, 2012
Massachusetts Attorney General Calls for More Loan Modifications for Distressed Homeowners, Massachusetts Real Estate Lawyer Blog, April 19, 2012
Mortgage rates hit new lows, by Martin Crutsinger, The Christian Science Monitor
Homeownership Rate in U.S. Falls to Lowest Since 1997, by John Gittelsohn, Bloomberg.com