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30 Year Fixed Mortgage Rates Continue to Stay Below 5%

Posted on | October 21, 2009 | No Comments

The average for conventional 30 year fixed mortgage rates continues to stay below 5%.  For almost an entire month we have seen mortgage interest rates that are near or below 5%.  The psychological level has been the talk of much discussion as a move in any direction above or below this is going to go a long way in deciding the long term direction of mortgage rates.

Recently we saw the 30 year fixed mortgage rate as low as 4.7%.  Most of the time when mortgage rates have gotten this low we have seen an immediate bounce back.  This bounce back has happened several times but it looks as if this move below 5% might be just what it takes to keep us below the psychological level.

President Obama introduced a new mortgage plan that is aimed at keeping mortgage rates low.  The Federal Reserve Bank continues to buy mortgage backed securities which is another reason we have seen mortgage rates lower.  The Fed recently announced that they are going to extend this program through March of 2010.

With the Fed extending the program it is likely that we are going to continue to see low mortgage rates until the program concludes.  There will be ups and downs along the way but as long as billions of dollars are going into mortgage backed securities it is very hard to see a way that mortgage rates are going to move much higher.

If you have been thinking about refinancing or getting your first mortgage now might be as good of a time as ever.  You can always take the chance and try to time the bottom but very few home owners will get lucky enough to do this.  Getting a mortgage rate under 5% is something that many home owners would do almost anything for.  Do not pass up this opportunity; there are many lenders advertising low rates so get out there and lock in at a low rate today!

Please check out our unemployment forum where we encourage you to post comments below whether it be a strategy you used to get a job, possible tips or links to those who are unemployed or even a rant about your previous employer and how they laid you off.  Anything goes as long as there are no obscenities or direct insults to other posters.

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Author: Mike Garner

Category: 30 Year Fixed Mortgage Rates

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