Freddie Mac reported that 30-year mortgage rates averaged 4.87%, while 15-year mortgage rates now average 4.33%. Combined with the first time (up to $8,000) tax credit, and affordable home prices, these super low rates make right now the time to buy for savvy investors and owner-occupants.
According to the National Association of Realtors, pending home sales rose 6.4% in August, marking the seventh consecutive monthly gain. In the week ending October 2nd, mortgage applications rose 13% for home buyers, and 18% for those refinancing.
Rates cannot stay this low forever, as Ben Bernanke reported today that his central bank will be prepared to tighten monetary policy (increase interest rates) when the outlook for the economy has improved sufficiently.