Interest rates fall: More good news for buyers

Need some good news about the residential housing industry? Well, if you’re a buyer, here’s some: Interest rates on mortgage loans have fallen to their lowest point in five months.

If you’re a buyer, this means you won’t pay quite as much on your monthly mortgage loans. How much less depends on the size of your mortgage loan.

Freddie Mac, the giant government-sponsored enterprise authorized to make loans and loan guarantees, reported on Nov. 1 that the average interest rate on a 30-year fixed-rate loan dipped to 6.26 percent. This is the lowest interest rates have fallen since May 17 of this year, when the average rate on a 30-year loan came in at 6.21 percent.

The average interest rate on a 15-year fixed-rate mortgage fell to 5.91 percent. This rate has not been this low since May 10 of this year, when it reached 5.87 percent.

This is further evidence that the residential real estate market is a good one for buyers. Home prices are no longer rising as quickly as they did during the housing boom. Sellers are willing to negotiate on prices. Homes are taking longer to sell, meaning that buyers have the chance to actually think about a purchase before making an offer. Now mortgage interest rates are falling.

The message? If you’re considering buying, there might not be a better time than now.