Biggest News of the Day, National News: Mortgage Rates Below 4 Percent

Link here.

The average rate on the 30-year fixed mortgage this week fell below 4 percent for the first time ever, to 3.94 percent.

For those who can qualify, it's an extraordinary opportunity to buy or refinance. And mortgage rates could fall even further now that the Federal Reserve plans to reshuffle its portfolio of securities to try and lower long-term rates.

On Thursday, Freddie Mac said the average rate on a 30-year fixed mortgage dropped from 4.01 percent last week, the previous low. The average rate on a 15-year fixed loan, a popular refinancing option, dipped to 3.26 percent, also a record.

Did you catch two phrases?

• "For those who qualify?"
• "First time ever" -- below 4 percent -- "first time ever" suggests something historic, I suppose.

If folks qualify, and are in the market to buy, and still don't buy -- what does that suggest?

That would be the metric I would like to follow: of those who qualify and of those who are looking to buy, what percent do NOT take advantage of this. One hundred percent of folks seriously looking to buy and qualify, and still do not decide to buy at this point -- there has to be a reason.

Those (of those that qualify, and those looking to buy) not taking advantage of this  historic opportunity probably understand two things: a) there is no hurry to jump in (the economy is not going to turn around very soon); and, b) there's always a chance that rates will drop further -- after all, one can buy a $50,000 car for zero percent interest, and in some cases get a rebate. Maybe folks are looking for that zero percent mortgage (farfetched? banks are paying the FDIC to hold way too much cash and are looking for ways to get rid of their cash. I can't remember if I posted that story/link -- it was a few days ago; not worth looking for it again).