U.S. Housing Market Mortgage Rates Maintain Slow Decline TrendHousing-Market / US Housing Sep 17, 2012 - 07:59 AM GMT
Brent Wayne writes: Housing mortgage rates in September 2012 continue to maintain the slow decrease in rate amounts, maintain the historically low levels not seen for 60 years. Rates for a 30-year single detached house mortgage are being offered at an average 3.79 percent as of September 6, 2012. This low rate has held since May . Some loans are seeing 0.4 points added, but those with good credit are being offered the average rate without any major conditions.
The low lending levels have for a year now been seen as ending soon, whenever the Federal Reserve decides to starting raising the cost institutional borrowing. However, the Feds have continued their policy through 2012 so far of keeping liquidity in the U.S. economy. Further, no one in the banking side wants to be responsible for dampening what’s left of the housing market and one of the core areas that keeps lending going. As a result, the rates continue to stay low for now.
That said, the amount of people eligible for the low rate home loans , however, are limited. Lenders continue to scrutinize and filter applicants, weeding out many who would like to borrow but are considered too much risk for tighter lending rules and credit scores . Additionally, many homeowners who want to refinance are underwater and lenders won’t touch a property that needs a loan more than 100 percent of the property’s value.
Another factor people are wondering will affect mortgage rates in the near future is the upcoming presidential election . However, there is no direct connection. Much of the feeling is pure conjecture. There is a general sentiment every election that if a Republican is voted in, a pro-business environment will ensue, and lenders will see more business with less regulation. That’s likely to make the borrowing environment boost, which the Federal Reserve might then dampen by raising rates to slow down inflation and keep growth controlled. On the other hand, if a Democrat is voted it, in the case the incumbent, then it will be more of the same, which will likely keep immediate rates the same. Again, this sort of prediction is pure speculation without any science behind it.
For the time being though, at least through the rest of 2012, rates will very much be staying at their low levels. So anyone who has the ability to successful purchase a home or refinance should take advantage of the opportunity.
Brent Wayne is a 23 years old housing and finance writer. He mostly spends his time writing blog posts and editorials or do web content writing for MortgageLoan.com On his free time he likes to play Xbox 360 and enjoys reading books and hanging out with his friends. You could reach him at email@example.com.
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