30-Year Fixed Mortgage Rates Dropping – July 2009

By Brandon Cornett | 7/19/09
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For the first part of 2009, the average interest rate on fixed-rate mortgages hovered around 5% — fairly steadily. But in the last month or so, those rates have seen more turbulence. Watching the weekly mortgage summary on Freddie Mac’s website was like watching a roller coaster. And right now, the roller coaster is dropping again.

For the week of July 13, the average rate for 30-year fixed mortgages in the U.S. was 5.14%. That’s good news for home buyers, as well as those looking to refinance. Just don’t expect it to last for very long. With confidence (and housing starts) rising in the building industry, the overall trend for fixed mortgage rates will probably go up for the rest of this year — despite the little hills and valleys along the way.

Shopping for the Best Fixed Rate Mortgage

We have answered a lot of questions over the years, most of them from first-time home buyers. And in that time, I’ve noticed a certain pattern. A lot of buyers reach the point that they are ready to talk to lenders — but then they stall. They do all of the necessary research, the get their financial ducks in a row, and then they hesitate.

I think a lot of people are intimidated by the idea of talking to a mortgage lender, getting quotes, etc. But you shouldn’t be. If you’ve determined a budget for yourself, and you know where you stand in terms of credit score and debt, it’s probably time to take the next step. And, of course, you can’t find the best rates on a fixed mortgage until you start talking to lenders.

I recommend using the Internet to save time and energy. For example, if you’re shopping for rates on a 30-year fixed mortgage, you can apply online through a lender network and get multiple offers from lenders. This is one of the best ways to compare fixed mortgage rates. In reality, the application process only starts online. You’ll still need to follow up by submitting various financial documents, and your lender will guide you through all of that. But the Internet is a great place to start because it’s such a time saver.

If you’re ready to take your home-buying process to the next stage, and you want to compare 30-year fixed mortgage rates, you can do so on this page of our website. Just look for the orange arrow that points to the mortgage quotes link … you can’t miss it!

Summary: The average rates on a fixed mortgage are some of the best we’ve seen in a while — hovering just above 5% in some cases. But I don’t think they’ll stay that low for long. So if you’re in the market for a home, and you want to get a good rate on a 30-year fixed mortgage loan, this might be the time to act. Using the Internet can save you time and energy, by allowing you to shop for interest rates more efficiently.