Have Mortgage Rates Fallen as Far as They Will Go?

With mortgage rates spending weeks and even months at historic lows, it is difficult to think that they could go any lower. And since the rates have been increasing slightly and steadily, it is even more difficult to think they will go lower. According to many analysts, the rates have hit bottom and are on their way back up.

Here are some of the numbers reported as the latest rates:

* For a 30-year fixed rate mortgage, qualifying homebuyers can expect to get a percentage rate of 4.81 percent. That’s a slight drop from the previous week’s 4.83 percent. Even so, the 4.81 percent is a little higher than the lower rates from a few weeks ago.

* Homebuyers searching for a deal on 15-year fixed rates can also expect a slightly lower rate than last week as well. Last week’s mortgage rates for a 15 year fixed mortgage were at 4.17 percent, but they dropped by about 0.02 percent to 4.15 percent this week.

Even though those numbers are lower compared to the previous week, mortgage rates overall barely changed when compared to the significant increases they have experienced over the last few weeks. However, many banks and lenders are still giving out lower rates for some buyers who show proof of qualifying credit scores and ample down payments. Also, these current rates are much lower than they were at the beginning of 2010, which is great news if you are able to take advantage of them.

Another good thing in the mortgage market is that home sales are up despite the increasing mortgage rates. It seems like the rates might be stabilizing which is leading to an upward trend in home sales. In November alone, existing home sales were up by more than five percent which has shown a trend in sales since July.

There are two other factors that are helping the upswing in the sales of existing homes. One thing, of course, is the lowered prices in the last couple years. Many homeowners want to get out from under their current mortgage and they will lower the price beyond its actual market value. Banks also want to get many foreclosed homes off their books. The creation of jobs across the country has also contributed to the increase in home sales.

It looks like there is some good news in the mortgage industry. Hopefully these good things will continue in the near future and lead to an upswing in the economy.