Low Mortgage Rates found in the United States

Low Mortgage Rates found in the United States
Low mortgage rates currently found in the United States are at levels that haven’t been seen for many years. On top of that, homes in many parts of the country are currently selling for bargain prices. Despite those two factors, home sales are very sluggish. Many people don’t understand why these houses have been empty for so long and think that they should have been snapped up by buyers long before now.

In July, the sales of previously occupied homes in the US actually fell by 27 percent. This is the largest monthly drop in more than four decades, which goes back to when these records were first kept.

On reason that that homes aren’t selling, even with the low mortgage rates, is the fact that buyers are holding out because they believe that the prices of homes still have further to fall. Sellers, however, are extremely reluctant to lowers prices any further on homes are already on the market for bargain prices.

Many analysts believe that despite the low mortgage rates, things could get much worse for the property market before they get better.
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Mortgage rates have fallen lower every week for over a month and are looking to keep falling. This news has potential home buyers waiting in limbo for the chance to secure a mortgage rate of under 5 percent.

The average 30 year fixed loan mortgage rate has dropped to 5.22 percent which is the lowest rate American’s have seen since the beginning of May according to Bankrate.com. They explain the drop by pointing to the lackluster job numbers that were released which shows the recovery from the economic slowdown may not be as quick or strong as analysts might have thought.

In an effort to boost home sales, Congress is meeting to potentially extend the $8,000 tax credit to 1st time house purchasers. The current tax credit has a deadline of November 30th and congress hopes to extend the date as well as make the credit available to all people who purchase homes not just 1st time buyers. Some analysts believe that the combination of the tax credit and extremely low mortgage rates will increase the number of new homes purchased in the coming months.

The low mortgage rates have sparked an increase in mortgage applications for the month of June as last week alone the number of submitted applications rose 16.4 percent.