30-year, fixed-mortgage rates fell to the lowest level in two years, according to a report by MSNBC. Additionally, rates on 15-year fixed-rate mortgages, a popular option for refinancing, fell to 5.73 percent this week.

Mortgage lending giant Freddie Mac reported an average mortgage rate of 6.10 percent for 30-year, fixed-mortgages, down from last month and marking the lowest rate since October of 2005.

According to analysts, the decline is likely due to the continuing housing slump and credit crunch that is currently plaguing the housing market. Turmoil faced by the stock market in the wake of an economic recession has prompted many investors to petition the U.S. Treasury for security solutions.

Frank Nothaft, Freddie Mac’s chief economist says, “Interest rates for U.S. Treasury securities have been drifting lower this month over market concerns that the housing slump and stress in the credit markets could slow future economic growth.”

Following a five year boom that recorded record sales last year, the housing market has seen a significantly severe slump in recent months. The surge of foreclosures due to resets in Adjustable Rate Mortgages has spurred mortgage lenders to ease rates in an effort to cushion the market.

In addition, the mortgage meltdown has also prompted lenders to tighten their lending standards, especially for subprime residential loans. According to Market Watch, at least 43%, or 23 of the 53 domestic banks surveyed, tightened their subprime mortgage lending standards. Banks are also tightening their standards on fixed prime residential mortgages by scrutinize borrowers more closely. As a result, some loan applicants, even those with good credit, are facing higher costs and more hassles.

You can even avoid being scrutinized by borrowers with some of the programs at Butterflylister.com that do not even require you to have typical bank credit scores. Many people are not aware that there are other ways to own a home. Not all of which require the tedious task of passing requirements and waiting for approvals. For alternatives to traditional bank financing check out http://butterflylister.com/Buy.htm for more information.

Siddique is real estate investor for over 22 years and President of http://www.butterflylister.com Download Free How to sell your Home for Full Price in any market.

Tags: interest rate, mortgage

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