Mortgages Are at a 37 Year Low!
December 19, 2008 by admin
Filed under Positive Real Estate
Rates on 30-year-fixed rate mortgages dropped this week to their lowest levels in at least 37 years, as the Fed pledged to pour money into the mortgage market in an effort to spur the moribund U.S. housing market. Freddie Mac, the mortgage company, reported Thursday that average rates on 30-year fixed-rate mortgages dropped to 5.19 percent, down from the year’s previous low of 5.47 percent, set last week.
“It’s a call to action for homeowners looking to get out of adjustable-rate mortgages,” said Greg McBride, senior financial analyst at Bankrate.com. The Federal Reserve, aiming to free up lending and jolt the economy back to life, on Tuesday cut the federal funds rate from 1 percent to a target range of zero to 0.25 percent and pledged to keep funneling money into the market for mortgage investments.
Mortgage brokers are already reporting a surge of calls from borrowers trying to take advantage of the Federal Reserve’s extraordinary actions.
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