Despite these record low mortgage interest rates, why aren’t I making more money with this website?
Judging by my advertising revenues, there’s little demand for mortgage customers right now. Lenders aren’t shelling out big backs to advertise. They’re probably keeping interest rates a little higher than they need to be to restrict volume so they don’t get flooded with mortgage applications and have to hire new workers in this uncertain economic environment.
Back in June, in a post about adjustable-rate home loans, Bucks mused about how nice it would be to have a mortgage interest rate that began with a “3.” The way things are going, that time may not be far off for fixed-rates loans, as well.
Mortgage rates reached record lows this week, according to the weekly market survey from Freddie Mac. The average rate on a 30-year fixed-rate loan fell to 4.15 percent, with borrowers paying an average point of 0.7 percent. That rate is down from 4.32 percent last week.
It is “the lowest in over 50 years,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a news release. The survey’s previous low was 4.17 percent in November 2010.
Average fixed rates for 15-year mortgages were already in three-point territory and this week they dropped even lower, to 3.36 percent, with an average of 0.6 points. Rates on adjustable-rate loans fell too.