Freddie Mac today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 4.85 percent with an average 0.7 point for the week ending March 26, 2009, down from last week when it averaged 4.98 percent. Last year at this time, the 30-year FRM averaged 5.85 percent. The 30-year FRM has not been lower in the life of Freddie Mac’s weekly survey, which dates back to 1971 for the 30-year FRM.
Potential homebuyers are taking notice of these historically low mortgage rates. Both new and existing home sales rose 5 percent in February. First-time homebuyers accounted for half of all existing home sales, according to the National Association of Realtors®. In addition, mortgage applications for home purchases consecutively rose over the first three weeks in March, based on figures published by the Mortgage Bankers Association.
What the federal government is doing seems to be working, so it is time to get out there and buy some real estate. There has never been a better time to buy a home. Money has never been cheaper to borrow, prices of homes are at record lows and banks are now equipped to lend money again. Also, first-time home buyers will have until December to take advantage of the $8,000.00 tax CREDIT for 2009.
Now, for all you sellers out there that are worried about what they will end up getting for their home, remember that you will make as much or more when you buy that next one. So, get out there and find your dream house!! Trust me, real estate is the best investment for 2009 and beyond.