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Mortgage Rates Fall For 11 Straight Quarter

646 words - 3 pages

Mortgages Rates Fall for 11th Straight WeekMortgage rates for 30 year fixed mortgages fell below 5% for the first time since Freddie Mac started tracking the data which started in April 1971. Mortgage rates have been going down since November or 2008 when the Federal Reserve said they would start pumping money into the banking system to buy up some of their bad debt. They hoped that would free up money so the banks would start lending it out again and ease up on their criteria for lending so the housing market could get back on track.Freddie Mac reported last Thursday that the 30 year fixed rate was now 4.96% breaking the previous record of 5.01% which was set the week prior. That was also the 11th straight weekly drop in the 30 year fixed rate, and that is well below the 5.69% which was what it was at a year ago.(Freddie Mac)The average 15 year rate actually rose from 4.62% to 4.65% that is also the lowest that has been since 2003. The average on the 5 year ARMs also fell to 5.25% which is at it lowest since 2005 and at that point is was 5.24%. (Freddie Mac)What does all this mean to an investor? Well on the surface this sounds great you would be able to buy an investment property for a record low interest rate and if you qualify you could make out pretty good especially since there are so many homes in foreclosure now.The problem is for investors even if you qualify in my area they are not allowing investors to carry more then 3 mortgages at a time, I was talking to an investor who owns a home on my route, and I was also taking to a few realtors that I no. Another problem for investors is even if you are able to buy a home cheap flipping it is almost out...

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