Buyers from across the nation are enjoying the lowest mortgage interest rates ever. Unfortunately the 4.09 percent interest for a 30-year loan has done little to boost home sales, according to MSNBC.com. In fact, this has been the worst year for home sales since 1997.
Many Americans are in no position to buy or refinance. High unemployment, scant wage gains and large debt loads have kept them away.
Others can’t qualify. Banks are insisting on higher credit scores and 20 percent down payments for first-time buyers. Some homeowners have too little equity invested in their homes to meet loan requirements.
Most people must also pay extra fees to get the low mortgage rates. Those fees are known as points, with one point equaling 1 percent of the total loan amount.
If more people could refinance, it would be an economic boost for America. However, it seems to be a waiting game for the return of consumer confidence.
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