By Marie Brown

Good News for Would-Be Sacramento Area Real Estate Buyers

SACRAMENTO (www.OBSNews.com) – Home mortgage rates across the United States have dropped for the crucial fixed-rate mortgage that most consumers these days are clamoring for. According to mortgage giant Freddie Mac it’s the ninth straight week that fixed-rate mortgages have sunk to or stayed at a record low.

People vitally interested in the Sacramento real estate market, especially agents, brokers, and mortgage loan officers , not to mention the many prospective buyers and hopeful home sellers, are all hoping that the continued low rates can prop up the local market despite the expiration of some very popular homebuyer tax credits.

4.42% was the average rate for a 30 year fixed mortgage for the week ending August 19, 2010. This number hasn’t been achievd in the nearly 40 years that Freddie has been keeping track. Last week the number was 4.44%.

Fifteen year mortgages, by comparison, were at an average of 3.9% for the past week, a .02% drop from the week before. This low represents a nearly 20 year low since records began in 1991. Five year Treasury-indexed hybrid adjustable-rate mortgages were at an average of 3.56%.

“The housing market is in a lull following the expiration of the homebuyer tax credits. Single-family starts fell for the third straight month in July to an annual pace of 432,000 homes, the fewest since May 2009," commented Amy Crews Cutts, deputy chief economist at Freddie Mac.

She continued, "In addition, homebuilder confidence fell for the third consecutive month in August to the lowest since March 2009, according to the NAHB/Wells Fargo Housing Opportunity Index . Even confidence among realtors was at a 16-month low in June, according to the National Association of Realtors®,”