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We have been saying it all year....Mortgage rates are at an all-time low.  But it is not expected to remain this way.  The Fed will cease buying T-Bills in June which would indicate that interest rates will have to rise, unless private sector money will come in to fill the gap.

Lisa Falon (Lic. # 198601) from Homestate Mortgage (Lic. # 189191) reported today that they are offering the following rates: 

• 30 year fixed (conv) 4.5% 
• 15 Year fixed (conv) 3.75% 
• FHA and VA 3.75%  
• 5/1 ARM 3.0% 
• VA/VMP through Alaska Housing at 4.375

Home values abound and there are mortgages available at the lowest rates in years.  Lisa can be reached by calling her at (907) 762-7546 or via e-mail at Lfalon@homestatemtg.com

Remember my business is built on referral.  If you or someone you know needs professional real estate services, please consider me.  I can be reach as follows:

Michael J. Droege 907-230-3372  mjdroege@gci.net  www.MichaelDroege.com  mjdroege@wordpress.com

Buyers Better Hurry: Rates Reach New Lows
For the sixth straight week, fixed mortgage rates inched down, reaching new lows for 2011. The 30-year fixed-rate mortgage averaged 4.60 percent this week while the 15-year mortgage averaged 3.78 percent, Freddie Mac reports in its weekly mortgage market survey.

Meanwhile, the National Association of Home Builders reported this week that home affordability reached its highest level in 20 years, making the purchasing power for home buyers even better during this traditionally prime buying season.

Here’s a closer look at mortgage rates:

• 30-year, fixed-rate mortgage: Averaging 4.60 percent this week, it was down slightlyfrom last week’s 4.61 percent average. Last year at this time, 30-year rates averaged 4.84 percent. The 30-year fixed rate mortgage hasn’t been under this week’s 4.60 percent average since early December 2010 when it fell to 4.46 percent.
• 15-year, fixed-rate mortgage: Averaging 3.78 percent this week, it also was down from last week’s 3.80 percent average. Last year at this time, the 15-year fixed-rate mortgage averaged 4.21 percent. It has not been under this week’s 3.78 percent average since late November 2010 when it fell to 3.77 percent.
• 5-year adjustable-rate mortgage: Averaging 3.41 percent this week, it was down from last week’s 3.48 percent average. A year ago at this time, the 5-year ARM averaged 3.97 percent.

Source: “Fixed Mortgage Rates Continue to Find New Lows,” Freddie Mac (May 26, 2011)