As interest rates continue to fall they now rest at rates not seen in nearly 60 years.
Freddie Mac reported Thursday rates as low as 4.12% on a 30-year fixed mortgage and 3.33% on a 15-year fixed, a loan often used to refinance, which market analysts say is the lowest rate ever for the shorter term loan.
Record breaking low rates have become the carrot dangled in front of possible borrowers. Low rates are there for the taking if a borrower has great credit scores of 700 or higher and 20% down for first time home buyers or enough equity in existing homes to try and qualify for another.
Many potential borrowers have the credit, but in today’s housing market 20% down is very hard to come buy and equity in an existing home may be even harder. Several homeowners are upside down in their home values and have hopes to someday breakeven.