Mortgage rates hit a three-month low

08.23.09
By Lewis Green

Americans who have been on the fence about making a home purchase may want to consider jumping at the chance as rates for a home loan are at their lowest level in three months and home prices remain relatively low.

According to Freddie Mac's Primary Mortgage Market Survey, both 30-year and 15-year fixed-rate mortgages are at their lowest level since May.

Frank Nothaft, vice president and chief economist at Freddie Mac, indicates that many people are taking advantage of these low rates and getting into new homes and boosting the housing market.

"Low mortgage rates are helping to reinforce the housing market. New construction on one-family homes rose for the fifth consecutive month in July to an annualized pace of almost 500,000 homes, the most since October 2008."

Figures released earlier this week from the Mortgage Bankers Association (MBA) also seem to show that Americans are attempting to grab home loans while rates are low. For the week ending August 14, the MBA reported that applications for mortgage purchase were up 4.8 percent over the previous week while refinances were up 6.9 percent.

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Americans looking to buy a home can now take advantage of low mortgage rates