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Rates on 30-year fixed mortgages dropped this week to their lowest levels in at least 37 years. The Federal Reserve says it's aiming to get the U.S. housing market moving again.
The the rate cut is a much-needed jolt that could help sell more homes. "All those that are on the fence, that are serious about buying a home, now have an opportunity that they probably won't see in their lifetime again," said Dan Christensen, president of the Coldwell Banker Residential Brokerage of Utah.
A week ago, the national average on a 30-year fixed dropped to a mighty low 5.47 percent; today it tumbled to 5.19 percent. We talked with buyers and refinancers in Utah today who were locked in at 5 percent, and some were shopping even lower.
"These are very historic times, especially from the interest rate and financial side. We've never seen anything like this," Christensen said.
There's still an oversupply of homes over $500,000, and there are plenty available in lower price ranges as well. "Anything less than $300,000, we have less than a six-month supply, which is kind of the standard. That's kind of an even normal market," Christensen said.
But these interest rates are still volatile, so don't get too hung up on trying to time the bottom, that's quite unlikely. Rest assured that these mortgage rates are at historic lows.
"They know they want to buy, but they weren't sure what the timing was. This is the time they really want to jump into it," real estate agent Gail Mannos said.
"Four-and-a-half-percent interest rates, which is what we're hearing. Those have never existed, and will probably never exist again. We don't know how long it will be before they jump back up," Christensen said.
But these rates are not a cure-all: you'll need good credit to qualify, and they won't rescue borrowers already in danger of foreclosure.
E-mail: jboal@ksl.com
