As the country is trying to recover from such crises, the government is finding ways to make home buying more affordable during these difficult times. One of these ways is lowering the average interest rate on a 30-year fixed mortgage.
According to Freddie Mac, a mortgage buyer, the interest rate on a 30-year mortgage loan has been lowered to 3.38% from the last week’s interest rate of 3.40%. This is even lower than November 2012’s decrease rate of 3.31%, which was reportedly the lowest to date since year 1971.
Meanwhile, if the consumer prefers to have the 15-year loan term, the fixed mortgage remains unchanged at 2.66%. The lowest reported interest rate on record is 2.63%. Choosing a shorter loan term can save you a lot of money over a longer loan period. The drawback, however, is that the monthly payment is higher.
Mac also mentioned that the annual average fixed interest rate on a 30-year mortgage loan for the year 2012 is 3.66%. This rate is reportedly the lowest annual average interest rate for the past 65 years. Considering the economic crisis, the 3.38% rate on a 30-year fixed mortgage loan may gradually help increase the demand on real estate industry at a modest pace.
Americans Turn to Getting Bad Credit Loans
Real estate industry, together with car sales industry, has been reportedly heavily affected by the global financial crisis. It has been found out that the reason for the comeback of housing industry for year 2012 is the lowering of interest rates. If the rate on a 30-year fixed mortgage will steady at 3.38% or lower, economists forecast that the housing industry will continue to strengthen in 2013.
According to economists, though there are positive responses in general from different business sectors, there are still uncertainties in the continuous growth of economic activity in the country. This is due to the unresolved fiscal policy that may lead business sectors to do budget cut for this year. That is why the demand for online bad credit loans still continues to flourish as a backup on financial assistance which has been proven helpful during hard times.
So far, the overall economic outlook of economists for 2013 is progressing especially on the real estate industry. There are already reports from different banks across the country showing a positive response on both commercial and residential mortgage loans. According to experts, this increase in mortgage loans may be due to the lower interest rates on such loans, making real estate investing enticing.