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The good news is that fixed mortgages dropped to records lows this week at 3.89 percent, down from last month’s 3.91 percent. The not so good news, is that an enormous number of folks can’t take advantage of them because they have lost their jobs. Low mortgage rates are good news for homeowners wishing to refinance their homes, just as they are for individuals who aren’t scared of losing their jobs and who have the down payment.

Though joblessness stats are better, hiring is still depressed. Many potential buyers can qualify for a mortgage but they are terrified to take the risk, because mortgages and employment is so closely connected. Employment is a condition of eligibility, except when a buyer can verify they have other income that satisfies the lender that their investment is safe. When circumstances such as these exist, employment isn’t a requirement of eligibility.

Savvy consumers are starting at a lessor point and aiming to buy only what they could afford should they have to settle into a lesser job. This strategy has been around for years, but primarily by older people nearing retirement who are looking to downsize and intentionally matching a smaller house size with retirement income. Nowadays, even young buyers need to consider all possibilities before taking advantage of historic low mortgage rates.

The government is trying to stimulate home buying with these new low rates, but as of yet, the numbers are still down, especially considering the new lows in fixed mortgages. Homebuilders are optimistic and permits to build are up, but so far, until the unemployment numbers flatten out, odds are potential buyers won’t grab the new lower rate fixed mortgages.

Look for exciting news coming out of the White House regarding solutions to the existing foreclosure inventory. Their proposed solution might give the mortgage and housing industries the oomph to get started again. The Home Affordability Refinance Program implemented last year started helping homeowners refinance their homes by loosening some of the existing restrictions and opening up to include anyone with a mortgage backed by Fannie Mae and Freddie Mac.

You no longer have to spend hours finding info about Petawawa mortgage.

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