Mortgate rates retreat near record-lows

Moving to a new home was made slightly more affordable this week with news that mortgage rates were again sliding lower.

The average 30-year fixed-rate mortgage rate decreased to 4.54 percent, down from 4.58 percent the week before, according to Bankrate.com. Fifteen-year fixed-rate mortgages were also down, averaging an even 4 percent, lower than last week's 4.06 percent rate. Adjustable-rate mortgages took the biggest dip, with five-year ARMs declining from 3.91 percent to 3.78 percent. Seven-year adjustable-rate mortgages were down to 4.04 percent.

The report added that mortgage rates' future might be directly tied to an upcoming Federal Open Market Committee meeting. There, the Federal Reserve will decide whether to purchase bonds and drive interest rates lower, a move that Bankrate.com said is unlikely given recent positive economic reports. "Nonetheless, any hint of what the Fed is thinking about either the economy or the need for additional measures, could spark the next big move in mortgage rates," the report said.

Though low mortgage rates are typically considered a strong draw for relocating families, some consumers' moving plans could be postponed if their credit situation is not strong. A separate Bankrate.com report stated that consumers with credit scores below 740 are not likely to be able to qualify for the best mortgage rates.
 

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