According to recent Freddie Mac rate reports, we’re seeing standard 30-year fixed-rate mortgages reaching new lows again.  As of the 22^nd rates dropped to 3.66 percent due to some weak economic reports.  Those numbers  are currently holding this week.

An additional record low was hit for 5 year adjustable rate mortgages which dropped to an average of 2.77%, down from 2.5%.

According to Frank Nothaft, the chief economist at Freddie Mac, “there are several factors contributing to falling rates, including reports of increased pessimism among consumers as well as declining industrial production in the last 90 days.”

The federal reserve’s policy announcement this week also noted that employment gains and spending on housing have been steadily slowing over the first quarter of 2012.

On the upside, the U.S. census Bureau reported that single-family home construction was up during may, which is a separate measure of confidence with the economy.  One of the main issues with the housing bubble burst was that new home construction dropped dramatically during that period.  Home builder confidence has been its highest level in 5 years as of this month.

Taking Advantage with a Michigan Mortgage Lender

As mortgage rates continue to drop, it’s important to remember that we’re nearly hitting bottom with getting financing on a 30 year fixed-rate mortgage.  At a certain point, these things will reverse and the interest rate will level off.  After holding, we can expect to see interest rates begin to climb steadily as the economy recovers.

It’s not a rapid change – not like we see with gas prices here in Michigan – but it is a change.  If you’re waiting to buy a home in Metro-Detroit, remember that even half a point of interest can equate to thousands of dollars over the course of a loan.

This is why I encourage a lot of my clients to make the move and buy now.  Even if you find that you’re not quite eligible to get a loan, you can at least get a snapshot of your situation after talking to a Michigan mortgage lender and discover what you need to do over the next 6 months to a year to strengthen your position.

Making your Money Work For you

If the only thing holding you back is not being able to hit that large down payment you assume is necessary, then tear down that barrier.  There are programs in Michigan to help first-time buyers get into a home and secure a mortgage for as little as 1.5% down.  $10,000  might be hard to swallow when you want to buy a home, but $1,500 down on a new home is likely much easier for future homeowners.

Find out what a Michigan mortgage lender can do for you to get you into a home.  Contact me today to talk about taking advantage of the current market and making that new home a possibility.