Mortgage Rates Remain Flat – Lowest in Decades
Even with the lowest Mortgage rates in years, the real estate market still remains listless and flat. What once was a mechanism that could easily control the highs and lows of the mortgage sector, interest rates as low as they were in the 1950’s are now seemingly being ignored by the general public.
Mortgage rates actually dropped over 30 percent for the month of may following the end of the federal tax break incentive. Freddie Mac one of the major players in the U.S. mortgage market announced not long ago that the average thirty year fixed mortgage rate is down to 4.57 percent, but even at these extreme lows not seen since the early 50’s it is still not enough to entice Americans into buying homes.
Once burned, twice shy seems to be the general consensus of opinion around the country. So many horror tales of families losing their homes and having to move out, many on the streets, are long and not forgotten.
The mortgage crisis caused the suffering of a nation on a coast to coast basis that will not easily be brushed aside.
In recent times new credit check requirements have been introduced by leading mortgage broker Fannie Mae, requiring lenders to run an extra credit check on borrowers. This new ruling is causing new concerns from lenders who fear it will hold the mortgage industry back even further.
Consumers are also apprehensive about these new credit checks, which could see people refused new mortgages at the last minute. Banks on the front line are reporting logistical nightmares and further costs to borrowers, which in turn is causing some mortgage loans to be knocked back.
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