Low Mortgage Rate

The housing market has been in a slump for quite some time due to the economy. However, low mortgage rates continue to give encouragement that this market may be able to recover. In fact, the rate is now at 4.32 percent – the lowest it has been in for a period of 40 years!

According to the National Association of Realtors, these low mortgage rates are making a difference. The number of contracts in July was up over 5% and the figures are expected to be even higher for August and September. With the end of the tax credit this year for home buyers this is going to be the additional incentive to get the housing market back on its feet.

Yet there is still more than low mortgage rates that have to offer for people to feel comfortable about buying a home. The government is doing their part too with the offers of lower down payments. Many lenders offer a fixed rate of interest that is round 4% and this means mortgage payments can be much lower on a monthly basis than someone thinks they will be.

For those struggling to pay their current mortgage, the opportunity to refinance at a lower rate can be a good thing to look into. With these low mortgage rates it can dramatically drop the monthly payment by hundreds of dollars. With many lenders the refinancing process is simple and have very few fees involved in the process and it is not required an excellent credit to qualify either.

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