Drop in Fixed Mortgage Rates
Drop in Fixed Mortgage Rates
Last week, the fixed mortgage rates fell again as the Federal Reserve planned to buy the mortgage backed securities. It was noted that rates for 30-year fixed home loan had declined to 4.80 %. On the other hand, the 15-year fixed rate was unchanged at 4.48%.
In an announcement on March 18th, the Federal Reserve said that it would purchase as much as $750 billion of additional mortgage-backed securities from Fannie Mae and Freddie Mac. This declaration resulted in record low rates for fixed mortgages. As the mortgage interest rates are falling to a record low, it will stimulate the buying of homes.
In the last week, due to lower rates, the number of mortgage applications in the U.S. rose. Moreover, refinancing applications also increased due to the falling of the mortgage rates. Thus, the lowering of mortgage rates is giving a positive boost to the real estate market helping it to come out of the present crisis.
May 1st, 2009 at 3:42 am
It’s really a great news that fixed mortgage rates have lowered once again
thereby helping lots of people to buy their first home. I agree with you that this would really help the real estate market to come out of the crisis that it’s facing right now.