Hoping to jump-start home sales, lenders have been slashing their loan interest rates to under 4 percent for many consumers.
According to facts released Thursday by Freddie Mac, 30-year fixed-rate mortgages (FRM) were averaging 3.99 percent. 15-year FRM were at an average of 3.27 percent, and adjustable rate mortgages (ARM) were staying low as well with a 5-year Treasury-indexed ARM of 2.93 percent and 1-year Treasury-indexed ARM of 2.8 percent. Lenders are hoping that these low interest rates will make people rethink home ownership, and so far, it has paid off. Home loan applications spike to a four-month high after Thanksgiving.
This is great news for people thinking about buying a home. These lower interest rates combined with the recent drop in unemployment mean that being a homeowner is attainable for more Americans, and people are taking advantage of the opportunity. 2011 was a tough year for the American people, and it is heartening that so many are giving new meaning to the phrase “home for the holidays.”
If you are looking for a new home, click on the Approved Home Loan tab above to qualify for the best available interests rates, and try out our Home Affordability Calculator here. You can also like Approved Loan Store on Facebook and follow industry trends on our blog.