For the 8th consecutive week fixed and adjustable rate mortgages have continued to drop to a new yearly low. Rates for a 30 years fixed-rate mortgage dropped from an average of 4.55 percent last week to 4.49 percent this week, as opposed to last years average at this time of 4.72 percent. 5 year adjustable-rate mortgage rates have dropped from an average 3.41 percent last week to 3.28 percent this week. This time last year 5 year ARM averaged 3.92 percent.
With mortgage rates dropping every week it would seem that the market should be flooded with new buyers, just waiting to take advantage of the low rates and cheap property. Not exactly. Even with the low rates its not guaranteed that you will be approved for a loan. It has become harder than ever to secure financing and the banks are making it as difficult as possible to get a loan. Due to their mismanagement of funds and blatant disregard for current and future homeowners, we are now looking at a market where if you don't have cash or perfect credit you are swimming upstream.
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