Low Mortgage Rates Tempt Hesitant Buyers
I have been saying this for awhile now. People want to buy because of the record low interest rates and home affordability. The tax credit is just a bonus.
Also, make sure when reading the headlines on interest rates you notice that it says the AVERAGE rate for the week ENDING. Take rates today, they are much higher than 4.71% paying .7% because bonds have gotten much worse the past 3 days especially today since the unemployment figure dropped unexpectedly.
“Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.71 percent with an average 0.7 point for the week ending December 3, 2009”