Mortgage Rates-Record Lows-December 3, 2009!

The average rate for a 30 year mortgage dipped to 4.71%, the lowest since the mortgage finance company, Freddie Mac began tracking the data in 1971. This rate was spurred on by an aggressive government campaign to reduce borrowing costs. The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market. That combines with the various incentives, makes it the best time to buy IF you have good credit and some money put aside for a downpayment, preferably 20% but there are some lenders that are still doing 10 percent. FHA loans require a minimum of 3.5% down and with a possible seller's contrubution, it would be feasible to come to the closing table with little money. Rates are NOT expected to go any lower and will be volatile. A lender will be able to lock in a low rate.

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