US mortgage rates hit a 60-year low
US mortgage rates hit their lowest level in six decades, making this the perfect time to buy or refinance a home. With today's rate, those who qualify could end up saving thousands of dollars a year.
"Low rates are great, but the real issue is that the pool of people who can get a loan or refinance is small," said Greg McBride, Senior Financial Analyst at Bankrate.com. Over half the potential home buyers are discouraged by the news, as they could not remit the required 20 percent down payment.
This week, the 30-year fixed mortgage rate fell to 4.12 percent from 4.15 percent. Freddie Mac, which has been tracking the rates since 1971, said the last time rates were this affordable was in 1951.
As for the popular refinance option, the 15-year fixed loan, it recorded an all-time low at 3.33 percent this week.
Mortgage rates tend to track the yield on the 10-year Treasury note. However, the downward path could provide some assistance to the economy if more people refinance.
According to a report, approximately 40 percent of US households have the necessary credit scores above 700 to get a prime mortgage rate.
However, only 50 percent of potential buyers believe they can save enough for a down payment, particularly one as high as 20 percent, said a survey by the National Foundation for Credit Counselling.
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