Freddie Mac's Primary Mortgage Market Survey for Nov. 12 put the average fixed interest rate for 30-year conforming mortgages at 4.91 percent.
On a $300,000 mortgage the principle and interest payment at today's average rate would be about $1,594, compared to $1,825 a year ago. That's a savings of over $231 a month, a year's worth of the savings -- $2,772 -- currently amounts to nearly two mortgage payments on a $300,000 mortgage. Less money going towards interest rates also means more purchasing power for buyers.
Combined with the $8,000 tax credit and low home prices, there is no doubt that this is the best time to purchase a home.
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