Mortgage Rates to Lowest Level in 37 Years

Freddie Mac reported that the average rates on fixed mortgages fell to 5.19% on a 30-year loan and 4.92% on a 15-year loan which marks the lowest level since the Freddie Mac lender surveys began in the early 1970s. The ability to refinance a mortgage loan at lower rates is better for homeowners who have a good credit score and equity in their houses after the credit market for borrowers with poor-to-average credit scores or little home equity has been decimated. The decrease in mortgage applications which are funded by lenders has fallen to ten-year lows and is not expected to improve. Credit analysts advise that homeowners with a strained credit score or negative equity in their houses may need to wait another six months to a year, before market conditions open again and allow more widespread refinancing.

The Federal Reserve and Treasury Department have pledged strong support to the mortgage industry which should help keep mortgage rates below 6% for some time. Some analysts predict that the 30-year fixed loan average could go as low as 4.50% in 2009 or 2010 as the government continues to offer support by buying mortgage-backed securities. Homeowners who want to compare mortgage rates quickly and easily and visit the online tools at GuidetoLenders.com.