Interest Rate Down Year Over Year
While the television news might ignor this story in favour of a more dramatic soundbite, did you know that the 30-year fixed-rate mortgage (FRM) is actually less in 2007 than in 2006? According to an article on Realty Times, the interest rate on a 30-year FRM averages 6.16 percent for this past week; for the same time last year, it averaged 6.59 percent. In fact, if you look at 15-year FRMs and adjustable rate mortgages (ARMs), mortgage loan interest rates are actually down across the board.
You'd never know that interest rates were actually a better deal now than last year, with all the crowing about inflation pressures and so on. However, it makes perfect sense. The housing market is definitely slowing down in the US. Freddie Mac says that the housing market alone was responsible for nearly a full percentage point of drop in GDP growth. If you don't buy that there's a drop in existing home sales or a drop in new home sales because things are booming where you are, it becomes pretty hard to ignor a growing problem when the slowing market hits GDP.
Should you take advantage of this interest rate breather? If you want to fix up your home, it could be the right time to think about refinancing to access some equity and lower interest costs. Rates on home equity loans are currently running around 8.25 percent, which is considerably more expensive that the most recent rates on mortgage loans.
What's your renovation need? Need to finish your basement? You might want to go to a few of this site's sponsors to see if they can provide you with a quote or some interesting ideas for your ugly, unused underground. Found the right contractor and now need the money? Get a handy refinancing quote online, and save yourself some legwork.