Average mortgage rates fell to another record low this week, according to data released Thursday by Freddie Mac. The average on a 30-year fixed mortgage dropped to 4.01 percent from 4.09 percent last week. It was the lowest number since Freddie Mac started recording it in 1971. For a 15-year loan, the average was an eye-popping 3.28 percent.
Despite these attractive rates, many would-be homebuyers aren’t taking action. High unemployment and tougher lending standards have made it difficult to make a major purchase.
And it’s not just new homebuyers that aren’t making a move in the current climate. As the Post’s Dina ElBoghdady recently reported, “Refinance activity has been constrained by tough lending standards, a weak job market and eroding home values — all of which have have kept millions of homeowners on the sideline. That leaves lenders chasing after a limited number of good credit quality borrowers who have enough equity in their homes to qualify for a new loan.”