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Mortgage Rates Decline but Demand for Mortgage Leads Rises
06th July 2009
According to Southern California mortgage brokers, the average interest rate on a thirty-year mortgage loan with a fixed rate dropped last week back down to the 5% range. Mortgage rates declined down from the 5.25% to 5.5% range last month as the U.S. unemployment rate hit 9.5%. Lead Executive, Dan Ambrose of the Lead Planet, a direct mortgage lead provider that specializes in high quality internet leads, said that, ”The demand for mortgage and loan modification leads increases every time the rates decline in the marketplace for consumers.”
A soft economy means investors buy U.S. Treasuries for their safety, which drags down their yields and indirectly leads to lower fixed mortgage rates. California borrowers with good credit today can get a 30-year conforming, VA, or FHA mortgage as low as 4.875% with 0.625-point fee, said Jeff Lazerson, head of online brokerage Mortgage Grader in Laguna Niguel. That’s for “conventional” loans up to $417,000 that can be sold to Fannie Mae or Freddie Mac. In most cases, these mortgage loans carry the lowest rates on the mortgage market. “Interest rates are lower because putting lipstick on a pig only works until you take a closer look…it’s still a pig,” Lazerson said. “In other words, the government and the Wall Street gatekeepers have been hyping that the economy is getting better. It’s not getting better. Some say, California consumers aren’t spending because they are worried about their jobs, if they haven’t already lost their jobs.”
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