Mortgage Rates Fall to Historic Lows
One byproduct of the Fed’s decision last week to buy long term Treasuries was that mortgage rates fell once more to historic lows.
At last week’s meeting, The Fed Chairman announced that the Fed would sell up to $400 billion of short term Treasuries and buy the equivalent amount of long-term ones.
While the stock market failed to catch fire on the news due to expectations of stronger Fed action, the average 30-year fixed rate fell to 4.02% from 4.18% the week before.
The average 15-year fixed rate also fell to 3.32% from 3.36%, with some mortgage deals reported at 2.875%. The 5/1 ARM also fell to 2.96% from 2.98%.
Unfortunately, the queues of customers lining up to refinance are not that long because so many are underwater or lack the income and credit to take advantage of the rates.
Nevertheless, for those who have owned homes for a few years and have rates of 5% and above, it is a no-brainer to refinance if credit scores will support it.
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Category: Mortgages, News and Opinion
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