Anyone want a 4% 30 Year Fixed Rate Mortgage?

10/04/2011:  On today, the graph of 30 Year indicated that the average 30 Year Conforming Fix Rate Mortgage originated (not including loan points) was 4.0% on 10/03/2011.

Take a look:

These mortgage rates are unbelievably low and along with home prices which are 35 to40% lower than the peak in many Orange County neighborhoods, buyers are now seeing payments which are 60 to 65% lower than “peak of the market” home payments. 

For many who are renting a home, the after tax cost of owning a home has fallen below the current market rent they are paying.

For buyers who intend to stay in the community for the long run, there is a strong incentive to buy.  Even if prices do not go up for years, the amortization built into the home mortgage contract will build home equity and a nice nest egg for retirement. 

Renters who remain renters in the same area for the long run will be the biggest financial losers.  They will pay down the mortgage of a savvy investor who owns their rental.

Scot Campbell is the President of The Scot Campbell TEAM at Coldwell Banker-Campbell Realtors in Huntington Beach, CA.  He has been a licensed broker for over 21 years and has brokered over 1000 homes and just about every type of transaction imaginable.  On his website you can search for homes and obtain an instant home value report:  He can be reached at 714-960-0700 at the office, 714-336-0394 on his mobile number or via email at

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