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Mortgage Rates for Homes and Income Properties Still Historically Low


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As I’m sure you already know, recent mortgage rates for both owner-occupied homes as well as income properties have seen historic lows in recent times.  And this trend does not look like it will change anytime soon.  In fact, just last week mortgage rates hit a new low point for 2011, although it’s not at the lowest levels seen over the past eight months.

Rates on 30-year fixed mortgages bottomed out at 4.32% in October 2010, and reached their 2011 peak (so far) in February with rates averaging 5.09%.  Last week (week ending May 13), the average rate for a 30-year fixed loan hit 4.74%, and in fact the average rate for all types of mortgages fell.  For the most current rates, checkout bankrate.com.

Note that the rates quoted above are for owner-occupied homes; add about 0.5% in order to estimate what the average rate would be for an investment property mortgage.  Thus, if you have decent credit you could probably get a 30-year fixed rate investment property mortgage in the neighborhood of about 5.25% right now.  

Last year at this time, many industry pundits predicted that the market would be in a state of recovery by now, which would drive up mortgage rates.  However, thanks to the influx of foreclosure property hitting the market, coupled with the continuing economic uncertainty plaguing the US and many other countries as well, the real estate recovery is moving much slower than expected.

What this means is that it is still an excellent time to either buy or refinance investment properties.  But rates this low will certainly not last forever.  So do yourself a favor and analyze the numbers to see if you can capitalize on these historically low mortgage rates.  You might find that taking a little action now could put thousands of dollars back into your pocket over the long haul.



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