Sacramento Real Estate Views

Sacramento Mortgage Rates

Long Term Mortgage Rates Hit All Time Low

According to Mortgage News Daily, mortgage rates have fallen for the 8th straight week with a new low average of 5.14% for a 30 year mortgage with less than a point paid.  That’s pretty low and a record since Freddie Mac began tracking this in 1971.  A check of the Freddie Mac Mortgage Survey confirms this as of December 24th.

On NPR yesterday morning, it was reported that there has been 48% jump in mortgage applications over the last week alone, the highest level in almost 5 years.

That’s good news for our local market or any market for that matter.  After the first of the year, there will be many more homes available for sale since the foreclosure moratoriums have been lifted by various entities both private and public.  Lower interest rates will help to keep inventories levels under control DEPENDING on the economy.  If the recession deepens into something worse, it won’t matter much what interest rates do as the unemployment situation will have worsened and even fewer people will be able to buy.

The Key

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Tags: mortgage, sacramento real estate