Mortgage Rates Hit Lowest Point
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According to Bankrate.com�s national survey of big lenders, mortgage rates have hit their lowest point in 26 months. The benchmark 30-year fixed-rate mortgage dropped to 17 basis points to 6 percent with an average total of 0.35 discount and origination points. (A basis point is one-hundredth of 1 percentage point.)
For the record, the 30-year fixed-rate mortgage had remained looking down at below 6 percent for half a year. It seems that a series of Federal Reserve rate increases has not stopped the rates to drop. I am sure this will be greeted with warm response by the public, particularly homeowners. Expect that there will be an increase in the number of borrowers refinancing their mortgages for a more convenient payment scheme.
On the other hand, United Mortgage Capital Corp. (UMCC) President Dan Dowling warns that �for borrowers with credit scores below 680, mortgages will become more expensive soon.�