The beginning of spring shows no signs of immediate recovery with Freddie Mac reporting a 30-year loan to qualifying borrowers at 3.88%. This percentage is a downgrade from the 3.9% held last week and barely higher than the average of 3.87% during the month of February.
What this means for potential homeowners is that now is the time to buy. Rates at this average are at historical lows and will probably never see these levels again. The average rate for a 15-year fixed loan are down to 3.12%, a further dip from last week's 3.13%.
Freddie Mac was created in 1970 by Congress to help stabilize the nation's housing market by purchasing and offering mortgage loans to potential homeowners for affordable housing that do not qualify for regular financial institute mortgage loans. Today Freddie Mac operates under a conservatorship but is still focused on providing mortgage funding for cheap homes while preventing foreclosures.
Several programs have been created under Freddie Mac in order to ease the overload of cheap homes on the current market. These programs offer aid to those wanting to stay in a home but have found themselves in difficult circumstances. Alt 97 Mortgages are available to those that have good credit but little cash for down payments. A- Mortgages are often offered to those with less than perfect credit scores and a variety of down payment options and rates. Rural Housing Service Section 502 was designed with low-income families in mind that have good credit but not the required income the otherwise quality.
For those wanting to obtain a new mortgage to take advantage of the low interest rates, Freddie Mac also has some great programs. The Financed Permanent Buydown Mortgage sets up low monthly payments for cheap homes while keeping the interest rate and down payment low. Financial flexibility is given through the Initial Interest-Rate Fixed Mortgages that extend the payoff term for longer periods. Other programs including ARMS and Balloon-type loans that can be made available for cheap homes depending on what the current needs of the housing market are.
Freddie Mac does not offer direct loans to consumers but operates in the secondary mortgage market. This means that you will never have a mortgage through this firm. However, Freddie Mac does have the ability to buy loans from financial institutions and set the underwriting requirements that they wish to buy. Banks and mortgage lenders become more flexible in dealing with potential homeowners looking for affordable homes when the entire pressure is removed from their private entity.
All of this spells good news for individuals seeking to take advantage of today's lower interest rates. You can learn more about Freddie Mac and other appealing programs by visiting RealtyStore.com. Once you have a plan for financing, you can go right into the section where homes and terms are displayed and explained in detail.