- Wealth PMS (50L+)
Mortgage buyer Freddie Mac says the average rate for 30-year fixed loans this week was 4.44 percent, down from 4.49 percent last week. That’s the lowest since Freddie Mac began tracking rates in 1971.
The average rate on the 15-year fixed loan dropped to 3.92 percent, down from 3.95 percent last week and the lowest on record.
To give you an idea – for a mortgage of Rs. 50 lakhs, the 30 year term 4.4% loan will mean a payment of Rs. 25,038. At Indian rates of 11%, the equivalent payment is 47,617, about 90% more.
Given a mortgage payment of 40% of salary, the person makes 62.5K per month, or 7.5 lakhs a year. At 11% the same person will need to make 14.28 lakhs a year.
From Calculated Risk:
If mortgage rates at this level don’t pick up housing in the US, it ng will. It seems rates were below 5% in the 1950s, btw.