Mortgage interest rates hit new record lows again last week according to Freddie Mac!  The 30-year, fixed rate mortgage averaged 3.4%, breaking through it’s all-time low set in July and falling from last week’s 3.49%. Last year at this time, the 30-year fixed rate mortgage averaged 4.01%.

All mortgage products, except the 5-year adjustable rate mortgage, averaged all-time lows.

The 15-year fixed rate mortgage, a popular refinancing choice, averaged 2.73%, falling from 2.77% last week and setting a record low. A year ago, the average rate for a 15-year fixed rate mortgage was 3.28%.  The new record lows should help support the recovering real estate market.

There are a lot of reasons to buy a home of your own.  Many people are still on the fence about buying after the housing market crash.  For most people, buying is a good option.  Here are a few reasons why:

• Interest rates on mortgages are at record lows – if you want to borrow a lot of money for a home, there is no better time to do it!
• A mortgage is kind of like a savings plan.  You pay in every month and when you go to sell years down the road you get your money back out. Granted with the housing crisis this did not pan out but now with the low prices, you won’t be going upside down.
• Home prices are really low, the inventory is dwindling causing some prices to start to rise but the home prices are still quite low.
• You can get some good tax credits and you know what you will be paying to live there for the amount of time your mortgage is locked in – no rent hikes!
• If you like a great credit score, pay your bills on time and your mortgage – mortgages that are paid on time help increase your score.

There are many more reasons to buy a home but these are a few you may not think of right off the bat!

According to Freddie Mac, mortgage rates have increased!  The rates had fallen in 13 of the past 14 weeks.  For the week ending August 2, the 30 year fixed rate mortgage was at 3.55% up from 3.49%, the 15 year fixed rate mortgage was also up to 2.83% from 2.8% and the 5 year adjustable rate mortgage was at 2.75% up from 2.74%.

Mortgage rates have dropped again this week according to Freddie Mac!  The average rate on a 30-year fixed mortgage  dropped to 3.53% from 3.56% last week. This latest drop makes it 12 of the last 13 weeks that a new record low has been set.  The 15-year fixed rate loan was also down to 2.83%,  from 2.86%. The only real question is when will the drop end and rates hold steady or start to rise.