If you have been waiting for the mortgage rates to come down before you decide to refinance your existing loan or to seek a fresh one for a new home, now is the time.
The mortgage rates have tumbled to record lows according to Freddie Mac. The efforts from the government to boost the economy does not seem to have the necessary efficacy to contain the fall of the mortgage rates.
The lower mortgage rates however inspire people to buy homes or to invest in the existing ones which helps the economy. A frenzied home buying also raises the price of the homes on sale. This tug of war continues until the forces stabilize which may not happen soon given other factors like lack of sufficient jobs that can bolster enough economic activity to encourage the home buyers sitting on the fence to jump in.
As of September 9, 2011, the 30 year fixed rate mortgage averaged 4.12%. The five year adjustable rate mortgage ARM continues to hover around 2.95%.
