Mortgage Rates Reach Low of 4.54 Percent

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The chance to purchase a home or refinance at this time is lost because of the tough economy and tight credit standards for many. According to experts, those who have superior credit, secure jobs and strong finances could do better than the 4.54 average rate that Freddie Mac reported.Since Freddie started tracking rates in 1971, the latest rate is the lowest for a 30-year fixed loan. Also, it marks the fifth time in six weeks that the mortgage company has reported getting to a new average low.If a borrower contributes over 20 percent to the downpayment or has impeccable credit, it’s possible to get a lower rate.Ritch Workman, co-owner of Workman Mortgage in Melbourne, Florida can offer a rate of 3.375 percent on a $200,000 Freddie Mac loan. The borrower is required to place 20 percent down, have a credit score of 800 and pay $1,400 in add-on fees.The best rates are sometimes offered by credit unions or community banks. According to Greg McBride, a senior financial analyst at, they keep mortgages on their books instead of selling them to investors. At other times, larger banks or smaller mortgage bankers have the best deals.Like airfares on a travel site, rates fluctuate significantly, even within a day. The key to finding the best rate is to shop around online and in person.Borrowers are getting good deals. During the 1950s was the last time home loan rates were lower, when most mortgages lasted just 20 or 25 years.A popular choice for refinancing, the rate on 15-year fixed loans are the lowest on records dating back to 1991. That rate decreased to 4 percent from 4.03 percent last week.Since spring, mortgage rates have been falling. Yields on U.S. Treasury bonds have decreased as jittery investors seek safer investments.Source: