Current Mortgage Rates
Considering the current economic situation in the United States, it is prudent to first have knowledge about the current mortgage rates. In fact, people who have taken adjustable rate mortgages would be all the more curious as it would affect the mortgage amount. |
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The good news is that the 30-year mortgage rate has fallen in the first week of December 2009. It now stands at 4.71. This is primarily due to the efforts put in by the government, who is trying very hard to bring down the cost of borrowing. It is believed that this mortgage rate is the lowest since 1971. Even the 15 year mortgage rate has also fallen to 4.27 percent, while the adjustable rate mortgage for five years has marginally risen from 4.18 percent to 4.19 percent.
The US Federal Reserve has been trying very hard to bring down the mortgage rates. It has been putting in money, around $1.25 trillion, into securities backed by mortgage. This is with the aim of trying to bring about a resurgence of the housing market and also to make homes more affordable for potential buyers.
However, even now getting approved for a mortgage is quite tough. Lenders have put down stringent standards for potential borrowers, and the best mortgage rates are reserved for borrowers who have a good credit history and have the ability to make the 20 percent down payment.
When it comes to the current mortgage rates, people should realize that the rates fluctuate on a weekly basis, and sometimes even on a daily basis. Therefore, it makes sense to keep an eye on the long term rates rather than weekly or daily rates as these are dependent on the yields offered by the long term Treasury bonds.
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