When American Congress and President Barack Obama hammered out a deal over the debt during the past week, mortgage rates dropped – hitting new low records in some cases.
The 30-year fixed rate mortgage, typically the most preferred selection for home purchasers, dropped to 4.45 percent from 4.57 percent previous week – its record low since last November.
In the meantime, the rate on the less popular 15-year fixed rate mortgage dropped to a new low point of 3.52 percent, down from 3.67 percent last week.
The record low mortgage interest rates drove up total applications for mortgages – both for acquisitions and refinancings – by nearly 7 percent, compared to last week.
Mortgage interest rates are following bond yields lower. The yield on 10-year Treasury notes reaches 2.6 percent on Wednesday down from 3.03 percent the last week of July.
With mortgage interest rates so low and home prices down over 30 percent from boom-level, perhaps there has never been a more perfect time to purchase a house.
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