Record low of 4.53 % Mortgage Rate in USA: To Buy or Not To Buy a Home

Mortgage Rate: Record low in USA
Mortgage Rate: Record low in USA

September 2, 2010, New York, (Calcutta Tube): The slow and jobless economic growth in the USA has resulted average conforming 30-year fixed mortgage rate to a record low of 4.53%. The average 30-year fixed mortgage has an average of 0.42 discount and origination points. If you have some money, may be it is right time to buy a house. The upcoming job report may even lower the mortgage rate even further down soon.

According to the report released by BankRate, the average 15-year fixed mortgage retreated to 4.05 percent, and the larger jumbo 30-year fixed rate dropped to 5.17 percent, both record lows. Adjustable rate mortgages were mixed, with the average 5-year ARM nosing higher to 3.86 percent and the average 7-year ARM drifting lower to 4.16 percent.

However, many of the potential buyers still could not take advantage of the low mortgage rate as they can not sell their existing homes! Some of the potential buyers are nervous about their job while some other fears that the price of the home would fall further.

Comparison:

[ReviewAZON asin=”B001HL01JQ” display=”inlinepost”]During November, 2006, the average home mortgage rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86.

With the average rate now 4.53 percent in September 2010, the monthly payment for the same size loan would be $1,016.94, a savings of almost $225 per month for a homeowner refinancing now.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

By: Ankan Basu

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