Right now may be an excellent time to consider a mortgage workout. For the sixth straight week, the average rates on 30 year and 15 year fixed mortgages fell to a record low, according to Bloomberg. Yet, experts say cheap mortgages may help boost home sales this year.
Nevertheless, reports from Freddie Mac say the average rate on the 30-year loans dropped to 3.67%. This is a sharp decrease from last week which was 3.75% and the lowest since the beginning of long-term mortgages. Furthermore, the 15-year mortgage declined to 2.94% which is down from 2.97% last week. Since last December rates on the 30-year loan have been below 4%. However, these low rates are a major reason the housing industry is showing modest signs of a recovery this year.
Dropped Rates Could Help Economy
Many experts say that if more people start to refinance, the drop in rates could provide some help to the economy. When people refinance at lower rates, they pay less interest on their loans and have more money to spend.
Last April, sales of both previously occupied homes and new homes rose near two-year highs. This is good news because builders are requesting more permits to build and are regaining confidence in the market.
In addition, the Mortgage Bankers Association stated that mortgage applications rose by 1.3% last week. While this is most likely because more people applied to refinance their homes, applications to buy a home actually fell for the fourth straight week. Although more people are starting to consider buying a home, dismal jobs report from the government are spreading fears that the economy is slowing down again. Accordingly, the employment rate crept back up last week and U.S. employers created only 69,000 jobs in May.
May Be a Good Time to Invest
Although some reports can be worrisome in a down economy, now can be a great time to invest in a home. If you have any questions about mortgage workouts or are dealing with foreclosure, consult with Lanigan and Lanigan in Winter Park, Florida. Our attorneys Eric and Roddy Lanigan will help you take advantage of the incredibly low mortgage rates and will make sure you invest wisely.