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How Low Can They Go?

Thirty-year mortgage rates recently fell below 4 percent for the first time in history. But that’s not the only good news for home buyers. Monthly mortgage payments are also at record lows. A home buyer purchasing a typical American home at current average rates would have a mortgage payment of just $698 a month, similar to payments buyers would have faced 30 years ago.

Home prices were considerably lower in 1981, but mortgage rates were a staggering 18 percent. Today’s prices are higher, but because of these record low mortgage rates, monthly payment obligations are significantly reduced.

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So What’s the Problem? Such remarkable interest rates and affordable prices, should have qualified buyers in the market for a home excited about their options, but unfortunately overly tight lending standards are making the process very difficult. Talk to a Realtor® about how this affects their clients and learn what steps buyers can take to qualify for a mortgage.