Mortgage Rates Dip Below 5 Percent

Freddie Mac has just reported that the average 30 year fixed mortgage rate was 4.87% for the week ending Thursday, October 8. It's the lowest that mortgage rates have been since the spring. For a $250,000 mortgage, the monthly payment at a 4.87% rate is $1,322. The 30 year fixed rate was 5.94% last year at this time, or a monthly mortgage payment of $1,489 on a $250,000 mortgage.

Buyers and those who want to refinance are not the only people interested in low rates. Sellers need to keep track of mortgage rates because rate changes will make their home more or less affordable. Real estate agents typically contact home buyers who are sitting on the fence to alert them to low interest rates, and "by owner" sellers should do the same. The smart "by owner" seller should take some time this weekend to call or email people who have showed interested in their house and let them know about these low rates. Buyers will appreciate that you are helping them save money in today's economy.

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