Good news for Sacramento home buyers this week; according to a report out from Freddie Mac, the average mortgage rate in the U.S. dropped to just 3.94%! They claimed that it is the lowest national average since 1971. Wow.

The bad news is that it is serious economic factors which are pushing rates down, such as the debt crisis in Europe, high unemployment and a fragile economy. Mortgage rates typically track the 10-year Treasury yields, which have been on a downward slide for quite some time. We all hope things start to improve soon, but even the darkest of clouds have a silver lining, and this may be it.

So, if you're considering purchasing a new home, or refinancing your current home, and can qualify for a loan, this is the time to do it! Imagine getting locked into a 30 year mortgage for under 4.00%! That would save you tens of thousands of dollars in interest payments over the years, and if you opt for a 15 year loan, your rate would be even lower.

Although banks have tightened quite a bit as far as lending goes, if you have a solid income history, good credit and a good down payment, you owe it to yourself to apply for these lower rates. As the expression goes, sometimes you gotta get while the gettin's good!