According to mortgage giant FreddieMac, 30 year fixed rate mortgages rose last week to an average of 4.84% from 4.78%. The low of 4.78% was recorded twice in April, as rates held below 5% for 8 consecutive weeks. FreddieMac's records date back to 1971.
Lower fixed rates have stirred the refinance markets as borrowers seek to lock in a low fixed rate that may not be available for very long. Many economist believe that mortgage rates will remain unchanged or fall further over the next 30 - 45 days.
Although mortgage rates have fallen dramatically over recent months, qualifying for a loan is much tougher. Lenders have tightened credit, reduced credit lines and only offer the best rates to borrowers with solid credit. According to Congressional legislation passed last week lenders offering other than traditional fixed rate mortgages would be required to verify a borrowers credit history and income and make a reasonable determination that a loan can and likely will be repaid. Additionally the loan should show a net tangible benefit for the consumer.
Being able to meet the tougher criteria can be a real benefit to anyone willing to invest now as we bounce along what seems to be the bottom. For some of the most incredible opportunities in the South Florida real estate market take a look at some of the properties I have available in great locations like Boca Raton, Jupiter Farms, Pt. St. Lucie, Boynton Beach, Deerfield Beach.
Anyone buying or selling a property should call or visit our website at ges-realty.com to learn more about how to buy and sell in today's tough economy.