Lowest Mortgage Rates in Decades Hit US

Home mortgage rates in the United States have hit their lowest levels since 1971, according to new reports. The average rate on 30-year fixed mortgages is down to 4.15% according to Freddie Mac. The last time long-term home loan rates were lower than they are right now was in the 1950's!

15-year fixed mortgages, which are very popular home refinancing options, also fell to record lows -- 3.36 percent this week. So the good news is that, if you can get approved, at least you may be able to refinance your home and lower your mortgage payments.

The National Association of Realtors reported that significantly fewer Americans are buying previously occupied houses. In fact, home sales fell three and a half percent in July. Most experts don't expect the ultra-low mortgage rates to boost home sales any time soon. The consensus is that "unhealthy" housing prices and poor sales will continue to hold back the overall US economy for some time.

Many people who would like to buy homes can't even take advantage of cheap loans because they don't have the money. Many don't even have jobs right now! The ones who do are more focused on lowering their personal debt levels and increasing savings than in taking on new debt in the form of a big home loan.

To make matters worse, most lenders are only willing to provide mortgages to people with very high credit scores and/or big down payments, especially for first time buyers. Banks simply aren't willing to accept any amount of risk that a loan won't be paid back. The few borrowers who can qualify for new loans are often choosing to refinance in order to lower monthly payments. But refinancing provides much less benefit to the overall economy than home buying does.

We say: We are 90% sure that mortgage rates will drop even MORE. If you've got the cash or the credit scores now is a great time to buy cheap houses in troubled markets (like Las Vegas!).

Learn some mo': Mortgage Rates Hit 4.15 Percent, Lowest In Decades