Mortgage lenders, brokers and real estate analysts have been forecasting for months that mortgage rates would be heading up soon. The only cause of disagreement was how much they would increase. However, months after predicting rate hikes, mortgage rates have actually dropped one-half of a percentage point and are near record lows. As of August 2010, the average rate on a 30-year fixed-rate mortgage was 4.49 percent. This is down slightly from 4.54 percent in July. After reassessing their forecasts in light of recent developments, analysts are citing a variety of factors that are continuing to keep mortgage rates at near-record lows. Chief among them was that lenders offered mortgages at artificially low rates, secure in the knowledge that they could package and sell these to government-owned Fannie Mae and Freddie Mac. Conventional wisdom (and standard operating procedure) held that Fannie and Freddie would then sell these securities to the Fed. Analysts also cited Greece’s financial crisis last spring and the economic uncertainties it created as another factor that kept mortgage rates low as skittish finance ministers took a wait-and-see approach to how that would play out in world markets. Now, lenders are taking a different approach, enticing homebuyers with marketing that draws attention to low mortgage rates and once-in-a-lifetime opportunities for them to save money. However, many people with sizable down payments and good credit are still concerned about job security and are reluctant to take on the debt of buying a home in the current climate. If you’ve been watching mortgage rates and waiting for the right time to buy a Louisville house, current low rates can mean tens of thousands of dollars in savings over the term of a mortgage. For the area’s best selection of Louisville real estate, call Louisville Properties at 502.744.9504 today. Resource link: http://www.nytimes.com/2010/08/08/realestate/08mort.html?ref=realestate