There is good news on the horizon for home buyers looking to get a long term mortgage loan. Anyone seeking a new home along the Orange Line will be happy to hear that the average rate for 30 year fixed rate mortgages have gone down again. If they keep going at this rate, we will be looking at historical lows for long term mortgage rates. Freddie Mac announced at the end of last week that the rates would be lowered again in response to data from December 2014 pending home sales, which were less than anticipated. For those who have been waiting to see if mortgage rates drop lower, this is what you have been looking for.
Freddie Mac lowered the average rate for a 30 year fixed rate mortgage down to 3.59% as of February 5th. This was down from 3.66% the week before. Only one year ago, the average rate of long term mortgages was at 4.32%. It is not just 30 year mortgage rates which were lowered either. 15 year fixed rate mortgages saw a drop as well, going from 2.98% down to 2.92%. Whether your long term mortgage plans include 30 or 15 year mortgage plans, this is a great time to look at getting your mortgage financing for a new home.
While Freddie Mac (and Fannie Mae) loans are geared toward first time home buyers, the average rates that they apply toward mortgage loans set the pace for other lenders to follow. Knowing where the average mortgage rates are within Freddie Mac will help you in your search for a mortgage rate that will work for you. The lower your rate, the more you pay toward your principal within your mortgage payments. This is a great starting point to keep in mind when you have made the decision to buy a new home, be it your first one, an upgrade to a newer one or for an additional investment. Living on the Orange Line offers plenty of variety when it comes to finding the perfect home. Myself, and the Orange Line Living Team are here to help you with our unique and specialized services so you can turn your home dreams into reality. To learn more about how we can help you, contact us directly at 571-969-7653 or at [email protected].