Mortgage Rates Hit Bottom
The present-day economy, not only in the United States but through all the developedcountries of the world, has fallen from soaring heights, to rock bottom. A serious credit crunch is setting in. As a result, those with good credit are finding that banks and lenders are chopping the fat off their mortgage rates in order to stimulate the consumer desire to take out a loan.
This process of lowering mortgage interest rates has already come into full swing in the U.S as a result of increased borrowing on the bond market. The list of these established financial institutions which are lowering their mortgage rates continues to grow.
Obviously, this isn't all good news. However, for people with good credit who are looking to finance a home or take out a mortgage, it does create a positive borrowing environment. In fact, due to mortgage rates hitting the deck, the housing and real estate markets here in the U.S. have finally come back to a reasonable level, which will allow many households to finally prosper. In recent months, an 18% increase of property resale has been recorded in the United States real estate market, and the government has announced that it will purchase millions of dollars of mortgaged back securities in order to ensure that the economy will continue to move forward.
Whenever we analyze the reason behind the falling mortgage rates we're observing, one of the first factors we always point to is that there is currently neck-to-neck competition dominating the real estate and mortgage financing markets. This severe shake-up that's taking place in the past couple of years in the financial sector has lead to new competition stepping in with fair practices which, in turn, has led the established banks to work harder to gain new mortgage customers. One of the first methods available to them is to lower the interest rates on mortgages. This means that right now is one of the best possible times to lock in a low, 30-year fixed rate mortgage. For those of you with good credit, now is definitely the time to start comparison shopping for a good mortgage.
by: DavidAKrebsAbout the Author:Krebs Financial of Miami, Florida is a full-service mortgage, credit repair, and loss mitigation company with over ten years of banking experience, handling a full spectrum of transactions from the simple to the most complex. KF can provide options and solutions to meet unique lending needs. www.krebsfinancial.com