Falling Mortgage Rates = Big Savings

Falling mortgage rates = big savings, from the USA TODAY, reports that mortgage rates have fallen for 10 of the past 13 weeks and are now averaging 6.11%, the lowest since January, according to Freddie Mac. Six months ago, the average rate on a 30-year fixed rate mortgage was 6.67%. The average this year is 6.44%. The unexpected but steady decline in rates could cushion falling home sales by making mortgage payments more affordable. Lower rates will also help the millions of homeowners with adjustable-rate mortgages that are resetting to higher rates. "These low rates really have come as a surprise, considering previous forecasts," said Greg McBride, a senior analyst at Baknrate.com. "And I don't see these rates going up by a significant measure anytime soon." "Lower rates should improve the affordability issue, which has really become a challenge to a lot of American homeowners," said LaVaughn Henry, an economist for The PMI Group, a mortgage insurance company.


http://www.usatoday.com/money/perfi/housing/2006-12-08-falling-mortgage-rates_x.htm