2008 starts out with a "boom" in the housing market! The lowest interest rates on 30 year mortgages since 2005 is great news for all buyers considering a move this year. If more buyers surface, that's good news for sellers too - once the supply and demand are more in-sync (rather than much more inventory than buyers), the market should begin to stabilize.
Long-term mortgage rates remain in a downward pattern, registering the third consecutive week of decline.
According to Freddie Mac's numbers, average interest on 30-year fixed loans settled the week at 5.69 percent—the lowest level since July 2005. Other rate declines include:
15-year fixed mortgages slipped to 5.21 percent from 5.43 percent a week ago.
5-year adjustable-rate average retreated to 5.4 percent from 5.63 percent.
1-year ARMs fell to 5.26 percent from 5.37 percent..
Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces—in which case they expect rates to decline further.
Source: Baltimore Sun (01/18/08)
# posted by
Angela May @ 8:15 PM
