Mortgage Rates at all Time Low
The link above will take you a video on CNBC.com talking about how mortgage rates have hit an all time low. There is word on the street that some lenders are offering 30 year fixed mortgages at 5.0% with 1 point origination fee (1 point is equal to 1% of the loan amount).
This is incredible for the real estate market. They say that a 1% drop in mortgage rates equals around 10-15% more buying power. This does two things; one, it allows buyers to afford more home for the same monthly payment and two, it allows sellers to not have to discount as much. I’m really looking forward to what 2009 has to bring especially with rumors of a goverment buydown of mortgages to 4.5%.
