30-Year Mortgages Lowest Since 2005

This is why it's so important to be aware of what's actually going on in the market, not just the surface trends touted in mainstream headlines. For many people this is an excellent time to buy!

"Long-term mortgage rates remain in a downward pattern, registering the third consecutive week of decline. According to Freddie Mac's numbers, average interest on 30-year fixed loans settled the week at 5.69 percent—the lowest level since July 2005.

Other rate declines include:

• 15-year fixed mortgages slipped to 5.21 percent from 5.43 percent a week ago.
• 5-year adjustable-rate average retreated to 5.4 percent from 5.63 percent.
• 1-year ARMs fell to 5.26 percent from 5.37 percent.

Observers generally agree that borrowing costs will remain at or near 6 percent for 2008 unless a U.S. recession surfaces—in which case they expect rates to decline further."

To read the article in Realtor Magazine Online: http://www.realtor.org/RMODaily.nsf/pages/News2008011802?OpenDocument