Monday, December 1, 2008

Mortgage Interest rates drop below 6%

So the first blog entry is not about an exciting feature in Prince George's County, but this will be coming to you shortly. I felt the news of the mortgage interest rate drop was very important to share with would be buyers. Acting now and locking in your interest rate can save you thousands of dollars, provide you with a lower mortgage payment and even more purchasing power.

30-Year Mortgage Rates Fall Below 6%

Associated Press (Washington Post)
Saturday, November 29, 2008; Page F05

Rates on 30-year mortgages sank for a fourth straight week, falling below 6 percent for the first time since early October, and are heading lower because of the government's massive new effort to aid the U.S. housing market.

Further drops are likely, analysts said, reflecting the market's positive response to the programs the Federal Reserve and the Treasury unveiled this week to fight the financial crisis.

The Fed's move to spend up to $600 billion buying mortgage-backed securities owned or guaranteed by mortgage-financing titans Freddie Mac and Fannie Mae caused rates to immediately drop by a half-point. Economists say the new Fed program should help keep rates low as the government increases efforts to battle the credit crisis.

Freddie Mac reported Wednesday that rates on 30-year fixed-rate mortgages dropped to 5.97 percent this week. That was down from 6.04 percent last week. It was the first time rates have been below 6 percent since they were at 5.94 percent the week of Oct. 9.

Freddie Mac's survey is normally collected from Monday through Wednesday and released on Thursdays. This week, it was put out one day early due to the Thanksgiving holiday. Since some lenders reported their rates Monday, this week's rates don't reflect the full impact of the Fed's dramatic action.

Rates on other types of mortgages were mixed this week.

For 15-year, fixed-rate mortgages, which are popular with people who are refinancing, rates averaged 5.74 percent, up slightly from 5.73 percent.

Rates on five-year, adjustable-rate mortgages dipped to 5.86 percent, compared with 5.87 percent. Rates on one-year, adjustable-rate mortgages dropped to 5.18 percent, from 5.29 percent.

1 comment:

brycecanyonhorseback said...

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