Mortgage rates continue to drop, but the bottom is unclear.  If your credit is right, down payment is ready, and your job is stable, it might be the best time to go house hunting.  According to Freddie Mac, the 30-year fixed-rate mortgage averaged 3.55 percent during the week ending August 22.  

The current 30-year fixed-rate mortgage is just 24 basis points higher than the November 2012 historic low when the 30-year fixed-rate was at 3.31 percent.  So, mortgage rates don’t have much room to drop lower where it will make real sense to wait.

Primary Mortgage Rates

• 30-year fixed-rate mortgage:  3.55%
• 15-year fixed-rate mortgage:  3.06%
•  5/1 adjustable-rate mortgage

Right now, a $350,000 mortgage will cost you just $1,265 per month excluding taxes and insurance.  Lower mortgage rates increase affordability, but you need to have good credit and a sizable down payment to take advantage of the best mortgage rates.