If you’re in the market for a new home I have some good news for you, mortgage rates are at their lowest levels since the 1950’s!
A 30-year fixed-rate mortgage averaged 4.19% this week and 15-year fixed-rate mortgages are down to 3.62%. This is according to Freddie Mac’s weekly survey of mortage rates.
The bad news? Even though the rates are low, qualifying for them isn’t always easy. You’ll need to have a good credit score of 720 or higher and a decent down payment (expect 10 to 20 percent) to qualify for the lowest rates.
Also, I’d be cautious about buying a foreclosed home right now. Several big banks are reviewing their recent foreclosures to make certain that they complied with state foreclosure laws. This is after it was revealed that executives were signing off on paperwork without reviewing it. It’s unclear how this will effect homes that have already been foreclosed on and vacated by their owners. So be prepared if you decide to go this route, it could mean additional time delays and aggravation.