Chicago Real Estate Guide

3.9: Mortgage Rates Settle Back Down

• March 1, 2012

by UrbanTurf Staff

For the past several weeks, mortgage rates have been flirting with going back above 4 percent, but have yet to do so.

This morning, Freddie Mac reported 3.9 percent with an average 0.8 point as the average on a 30-year fixed mortgage, down from last week’s 3.95 percent, but above the record low of 3.87 percent from a few weeks ago. Rates have now been below 4 percent for thirteen consecutive weeks.

From Freddie Mac vice president and chief economist Frank Nothaft:

Fixed mortgage rates bottomed out in January and February of this year which is helping spur the housing market. For instance, pending existing home sales rose in January to its strongest pace since April 2010 and sales figures for December saw upward revisions. In addition, the Federal Reserve noted in its February 29th regional economic review (or Beige Book) that residential real estate activity increased modestly in most of its Districts over the course of January and early February, with several reports of increased home sales.

We have been saying this frequently in past months, but it bears repeating: the rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

Here’s a look at the path of rates since last January:

This article originally published at http://chicago.urbanturf.com/articles/article/3.9_mortgage_rates_settle_back_down/5226