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Record lows set again for mortgages

By Associated Press

LAST UPDATED: 07:17 a.m. HST, Jul 19, 2012

WASHINGTON >> Average rates on fixed mortgages fell again this week to record lows, creating more incentive for buyers to enter the recovering housing market.

Mortgage buyer Freddie Mac said today that the average rate on the 30-year loan fell to 3.53 percent. That's down from 3.56 percent last week and the lowest since long-term mortgages began in the 1950s.

The average rate on the 15-year mortgage, a popular refinancing option, declined to 2.83 percent, below last week's previous record of 2.86 percent.

The rate on the 30-year loan has fallen to or matched record-low levels in 12 of the past 13 weeks.

Cheaper mortgages have contributed to a modest housing recovery. Home sales fell in June but were up from the same month last year. Home prices are rising in most markets.

Builders are putting up more houses than they have in nearly four years, a long-awaited recovery that could help energize the U.S. economy.

Low mortgage rates could also provide some help to the economy if more people refinance. When people refinance at lower rates, they pay less interest on their loans and have more money to spend. Many homeowners use the savings on renovations, furniture, appliances and other improvements, which help drive growth.

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808Cindy wrote:
I've asked people who recetly purchased properties, and no one has claimed to have used that low interest rate. The lending institutions all have their stories and offer you a higher interest rate. Wave the bait and hook the catch!
on July 19,2012 | 07:07AM
kainalu wrote:
Unless of course, you're Mark Zuckerberg - the kid that founded Face Book. He got a 1.05% mortgage-rate, because he's rich, aka, a "non-credit risk". See how that works? The rich get richer. Shouldn't it be the other way around??? If a buyer is able to purchase the property outright, but still applies for a mortgage - shouldn't they pay the high interest? You would think that the people that can least afford it, aka, the working-class poor should be getting the low-rate mortgages.
on July 19,2012 | 07:29AM
HD36 wrote:
If I got a friend Joe, who's unemployed, broke, and needs $500, and I got another friend, Mike, who has a job at Pearl Harbor as a civil servant, and gets a COLA check the size of most people's paycheck; who's more likely to pay it back? Mike of course. Since Mike is such a low risk, I charge him the lowest interest rate. With Joe, who has no means of paying the debt, I have to charge more to reflect the level of risk he represents. Now, look at the United States, the largest debtor nation in the history of the world. The interest rate is at hisotoric lows and counties across America are going bankrupt, ie, San Bernadino, Stockton, etc.. The same laws of economics do not apply; that being the more risk, the more interest charged on Treasury Bonds, ie government debt. The reason they don't apply and the whole bond market is distorted way out of whack for the last 30 years is that the Fed can buy up the bonds, ( 60% of all purchases at last reading), and the Petro Dollar Trade, which requires Saudi Arabia to buy up debt with any surplus in exchange we built them Saudi ARAMCO, the largest company in world. Nothing can stop the next bubble from popping. Prepare
on July 19,2012 | 08:25AM
saveparadise wrote:
We are good to go when home prices fall back close to 2002 levels where they should be. The manipulation and speculation have taken prices to outer limits. The rich love it but the locals who drive the economy only end up paying higher rent and taxes.
on July 19,2012 | 08:42AM
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