Fixed rate mortgages for a 30-year loan dropped to an amazing record low rate of 4.44% for the week, according to the weekly Freddie Mac survey nationally. The rate on a 5-year adjustable rate mortgage also fell to a new low as bankers slashed rates hoping to stimulate the housing market.
The rate on a 30 year mortgage dropped another .05, while the adjustable rate loan came down 0.7. The 15-year fixed rate mortgage averaged 3.92% down from last week when it reached a new low threshold just three-hundredths of a percent higher.
Banks and mortgage lenders are hoping that the historically low rates will help produce an increase in home sales, but consumers don’t seem to be buying it with concerns about the overall economy and high unemployment, which has remained at 9.4% nationally or higher for months, according to government figures. Real unemployment, however, including those who have stopped looking for work all together stands somewhere above 17 to 18%.
Worries over the greater economy were also fanned by the Federal Reserve this week as it noted in its policy statement that is was concerned over a greater slowing of the U.S. economy. Fed statements like this usually precede rougher economic times ahead.
Declining home values are still being tracked in the over-whelming majority of markets throughout the nation by Housing Predictor, but some of the hardest hit areas of the country are seeing a rebound in home pricing. Most of those are listed in the best 25 housing markets for the year.