With fixed mortgage-interest rates at an all-time low, it might seem as if real estate offices should have house hunters lining up, ready to sign on the dotted line. Last week, Freddie Mac announced that the average 30-year rate had fallen to 4.27 percent.
At that rate, a $200,000 mortgage — not including hazard insurance and taxes — would cost $986.22 a month. Add to that the decline in home prices, and it seems like a combination that’s hard to resist.
But banks are extra-careful these days about whom they lend money to, with the result that many looking to buy houses aren’t able to qualify for the lowest interest rates — or for mortgages, period.
Real estate agents and mortgage brokers say they are trying to work with buyers to clear obstacles to borrowing created by cautious lenders. In some cases, the agents and brokers say, such efforts might include providing lenders more income documentation and clearing up borrowers’ credit issues.
