Mortgage Rates Edge Below 6%

For the first time since early spring, mortgage rates have fallen below the 6-percent threshold. Freddie Mac reports that 30-year fixed loans came in at an average of 5.93% last week, down from 6.35% a week earlier and 6.31% at the same time last year.

A borrower taking out a $200,000 mortgage at 5.93% would pay $1,190 for monthly principal and interest payments, which is $54 less than the payments on the previous week’s rate. “Consumers see a five in front of mortgages, and they get excited,” says Keith Gumbinger, a vice president at research firm HSH Associates.

It is certainly refreshing to see mortgage rates below 6%, but we wonder if that will be enough to spur home buyers to take the leap during a possible credit market collapse; I’m not that apt to leap in just yet.

If you liked this post, you may also like:
Mortgage Rates Set Another New Low
5 new rules for Nashville home buyers
The Media Vs. The Real Estate Market
How Much Does It Really Cost to Buy a Home?