Mortgage rates move lower following the elections

Mortgage rates have dropped following the elections in the U.S. as the stock market has moved lower following a rapid rise in many equity positions over the last two weeks. The average rate on a thirty year fixed rate loan was at 6.2% according to a recent report from Freddie Mac, the nations second largest agency lender.

The stock market has dropped sharply as investors are again focussing on corporate earnings and economic reports that clearly indicate the economy is struggling with numerous issues. The Bank of England dropped their funding rates by 1.5% in an effort to try and prop up the economy and improve liquidity in Great Britain. World markets in Europe and Asia have dropped sharply as more large corporations are reporting dismal outlook for earnings growth in the near future. Stocks have been beaten down in many sectors as the market is off over 30% year to date, despite rallying off of the lows from October.

Consumers who are shopping for a mortgage could benefit from the recent drop in the stock market and improving credit markets to secure a new mortgage in the lower six percent range. The U.S. housing market is beginning to show signs of a bottom as lenders have agressively moved to slow down home foreclosures.