Mortgage Rates Fall, Yet Again, To Records Lows

Long-term mortgage rates keep falling to new depths. While this isn’t helping boost sales in the Chicago real estate market, it is motivating homeowners to refinance.
Freddie Mac said Thursday that long-term mortgage rates are at their lowest levels since the mortgage buyer started keeping track.
The average rate on a U.S. 30-year, fixed-rate mortgage was 4.36 percent for the week ending August 26.
That’s a drop from 4.42 percent last week and 5.14 percent from the same week a year ago.
Freddie Mac has been tracking the 30-year mortgage, the most widely used home loan, since 1971.
The 15-year mortgage rate averaged 3.86 percent, down from 3.90 percent last week and 4.58 percent a year ago.
Despite the record low rates, home sales continue to drop. In July 2010, compared to July 2009, Chicago home sales fell 19.5 percent; Chicago area sales dropped 25.1 percent and statewide sales decreased 29.7 percent.
Refinancing, however, is at its highest level since May 2009. This week, homeowners refinancing their mortgages made up more than 82 percent of all new loan activity.