30-Year Mortgage Rates Drop to 3.94%

October 6th, 2011

It's been a buyer's market, and it's only getting better! For Auburn home buyers who are still on the fence about purchasing a new home, this week's financial news may come as call to action. The recent changes from the Federal Reserve have now resulted in some very attractive mortgage rates, making this market even more favorable for home buyers. The average rate on a 30-year mortgage went from 4.01% down to 3.94% in the last week, due to the Fed's buying and selling of its short-term vs long-term securities.

Even before this week's drop, rates have been near historic lows for months in an attempt to boost sales of previously occupied homes. The Fed's shuffling of securities has also helped drop the rate of a 15-year fixed loan to 3.26%. By dropping the rate on the 15-year fixed, not only do new homes for sale look more attractive, but so does the option to refinance and existing mortgage.

The lowered rates help not only to boost home sales and refinances, but the money saved on mortgage payments inevitably gets pumped back into the economy. The economic benefit to the situation is two-pronged, and has makes for the best time yet for home buyers to be looking for new homes for sale in the Auburn Opelika area.