Mortgage Rates at Record Lows

Yesterday, on September 8th, it was reported in an article by KOMO News economist writer, Derek Kravitz, that fixed mortgage rates have fallen to the lowest they have been in the last six decades.

The average rate for a 30-year fixed mortgage fell .1%, going from 4.22% to 4.12%, while the average rate for a 15-year fixed mortgage changed from 3.39% to 3.33%. These are the lowest rates on records dating back to 1971 and 1991 respectively, but economists say that it is likely that these are the lowest rates ever.

Except for two weeks over the past year, the average 30-year fixed mortgage rate hadn’t peaked 5%, but real estate prices and sales were still down and holding back the economy. Mortgage rates typically coincide with the yield on the 10-year Treasury note. That being said, when investors start pulling their money from stocks and putting it into Treasurys, that yield drops, and so do interest rates.

The U.S. Treasury note fell to an all-time low this last week, but even with such low interest rates; many people are still in no position to take advantage of these rates. In today’s economy, Americans are unemployed or taking pay cuts, and even if they’re not, they are unable to qualify for the lowest rates.

Banks are only accepting credit scores over 700, and asking for 20% down payments. According to an analysis of Fair Isaac Corp. data by the Associated Press, “roughly 40% of U.S. households have the necessary credit scores to get a prime mortgage rate”, and according to the National Foundation for Credit Counseling, only half of Americans believe they will ever be able to save enough money for a 20% down payment.

Kravitz writes, “nearly a third of homeowners have nearly zero equity or are underwater in their mortgage…leaving them unable to refinance because of lender-imposed limits and the cost of extra fees.”

Many people are struggling to shrink their debt. Some very smart people think that it is slowing again and many experts believe that we may be headed for another recession. Don’t enter a second recession with piles of debts. I can counsel you on your debts. I am sure that I can be of assistance to you, a family member or a friend as we all know someone experiencing trouble these days even if we are not experiencing our own financial troubles. Please do not hesitate to make contact with me. I emphasize courteous and discrete consultations packed with plenty of information. The life impact of meeting with me in person will be unforgettable. You will enjoy a new peace of mind and a fresh hope for the future with a new roadmap for financial success that we develop together. You can email my scheduler through our website for your free 30 minute consultation at staff1 . To schedule immediately, we can be reached at 253-383-1001 M-Th 9am-5:45pm and Friday 9am – 12pm.

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