30-year mortgage rates hit 2 1/2-year low

The big news this week on the housing front was continuing decline of mortgage interest rates. This from the Associated Press:

“Rates on 30-year mortgages fell for a third straight week to the lowest level since the summer of 2005. Freddie Mac’s weekly survey showed that 30-year, fixed-rate mortgages dropped to 5.69 percent from 5.87 percent last week.

On 15-year mortgages, rates dropped to 5.21 percent from 5.43 percent. Rates on five-year adjustable-rate mortgages declined to 5.40 percent from 5.63 percent, and rates on one-year ARMs fell to 5.26 percent from 5.37 percent. It marked the first time that the 15-year rate has fallen below one-year adjustable-rate mortgages in seven years. “

As the economy continues to show signs of slowing, the mortgage rates continue to make buying a home attractive. Combine that with competitive pricing for homes for sale due to bloated inventory, and now really is the best time to purchase.

If you are wondering how must you can afford, just click on our Home Buyer’s Calculators and you will know, and then visit our MLS search page and find homes that interest you in your price range, and we would be more than happy to get you more information on those homes.