In response to the current uncertainty over European Debt, U.S. borrowers can now find the lowest mortgage rates year-to-date.

According to Freddie Mac, “mortgage rates fell to their lowest level of the year last week as yields on U.S. government securities fell, since fixed mortgage rates tend to follow the yield of 10-year Treasury notes.”

With the average 30-year fixed rate falling 4.84 percent from 4.93 percent a week earlier, Freddie Mac goes on to say it was the lowest rate since mid-December, when the average rate was about 4.81 percent.

Economists are predicting that these lower rates may help offset the fallout from the expired new homebuyer tax credit that is expected to hit at the end of June.

In short, although the time to claim a tax credit has passed, it may still prove to be a good time to buy a new home and lock in these lower interest rates that could save you even more than $8000 over the life of your mortgage!