Low Credit Union Mortgage Rates Can’t Help Housing Market Recover

Record breaking low credit union mortgage rates across the county can't help the housing market recover as new home sales fell 8.4 percent in June to an annualized rate of 350,000 after reaching an two year high in May of this year. Mortgage rates today are averaging 3.54 percent, an all-time record low for 30 year conforming loans.

There are many credit unions offering mortgage rates for home purchases and refinance rates for re financing loans below the average of 3.54 percent. With different point combinations you can find 30 year conforming rates as low as 3.25 percent. Points allow the borrower to pay money upfront at closing to buy down the mortgage rate.

Average 15 year credit union mortgage interest rates are also at a record low today. Current mortgage rates on 15 year loans are averaging 2.96 percent, an-all time record low.

Of course you can find credit unions in your area offering 15 year mortgage rates and 15 year refi rates below the average of 2.96 percent. Right now on our rate list in California there are a few credit unions offering 15 year refinancing rates around 2.75 percent with 1.5 to 2 mortgage discount points.

New home sales declined in June as buyers are worried about the economy and the fiscal cliff that awaits the county if Congress fails to act. Homeowners who refinance actually save money by lowering their mortgage payments so in an uncertain economy record low refinance rates still spurs demand.
Author: Brian McKay
July 25th, 2012