This article recently appeared on Inman News. Some folks correctly read that getting a historically low interest rate can partially defend against future drops in home values. This is true to an extent.
“Mortgage rates remained at or near historic lows this week on continued weak economic and housing data, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey.
A separate survey by the Mortgage Bankers Association showed low rates aren’t getting buyers off the fence, with demand for purchase loans remaining near 15-year lows last week.
Freddie Mac’s survey showed rates on 30-year fixed-rate mortgages averaged 4.22 percent with an average 0.7 point for the week ending Sept. 1, unchanged from last week but well below the 2011 high of 5.05 percent seen in February. The average for a 30-year fixed-rate mortgage hit an all-time low, in records dating to 1971, of 4.15 percent during the week ending Aug. 18.”
Source:
http://www.inman.com/news/2011/09/1/mortgage-rates-hover-around-all-time-lows
Author: Inman News