The Housing Chronicles Blog: Amidst all the bad news, mortgage rates at lowest rates in 4 years!

Thursday, December 11, 2008

Amidst all the bad news, mortgage rates at lowest rates in 4 years!

Who knows how long they'll stay there, but due to reduced fears of future inflation and the federal government's intention to better firm up the mortgage market, national rates for 30-year fixed notes fell to under 5.50%. From an story:

Rates on 30-year-fixed mortgages dropped this week to their lowest levels in more than four years, effects of a startling November unemployment report and a government plan to buoy the housing market.

Freddie Mac reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.47 percent, down from 5.53 last week. The rate is slightly below this year's previous low of 5.48 percent during the week of Jan. 24, and the lowest since March 25, 2004, when it averaged 5.40 percent.

Mortgage rates started falling after the Federal Reserve launched a sweeping new effort in late November to aid the U.S. housing market by purchasing up to $600 billion of mortgage-related securities and other debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks. Fannie and Freddie own or guarantee about half of the $11.5 trillion in U.S. outstanding home loan debt...

Click here for full story.


Anonymous said...

Whoa, whoa , whoa. Did you say that Frannie and Freddie are STILL backing mortgages. I thought that the whole reason for the debacle we are in now.

Unknown said...

There is a lot to learn before deciding on a mortgage loan . It's helpful to get this kind of info.