30 year fixed rates at their lowest.

30 year fixed rate home mortgage rates sank to their lowest level in over a year, despite the certainty of a rate hike in the overnight rates by the feds.

This is defiantly good news to those who are desperately trying to buy into the American dream and are faced with soaring real estate values.

Freddie Mac, in its weekly survey, reported that for the week ending June 30, rates on 30-year, fixed rate mortgages, for conforming loan amounts dropped to 5.53%, down from 5.57% last week. This week's rate was the lowest since early April 2004, when rates on 30-year mortgages averaged 5.52%, a spokeswoman for the mortgage giant said.

Jumbo loan amounts command a slightly higher rate and you should expect to pay additional rate/fees for specific additional features such as stated income, lower than prime credit scores etc… Most construction loans fall into this category.

According to the same survey, rates on 15-year, fixed-rate mortgages, a popular choice for refinancing a home mortgage, also declined this week to a level not seen in over a year, to 5.12%, compared with 5.16% last week.

Construction loans are normally based on 3/1 ARM or 5/1ARM mortgages which are also at their lowest level in over a year.