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30 Year Fixed Mortgage Rates Still Low Due to Federal Reserve Bank

Posted on | November 6, 2009 | No Comments

The average 30 year fixed mortgage rate has been at or below 5% for quite some time.  The Federal Reserve Bank has a lot to do with this because they have made the decision to purchase US Treasuries and Mortgage Backed Securities (MBS) since March of 2009.  Just recently we have seem them tail back the purchase of US Treasuries but thy are continuing to buy MBS.

As long as the Fed continues to buy MBS we can expect mortgage interest rates to stay below 6%.  With the conclusion of the US Treasury purchase program you can expect to see mortgage rates move up from their current levels but this does not mean that they are going to shoot up much higher.  Many analysts are predicting somewhere in the 5.5% range.

If you have been thinking about refinancing then it might be time to take some action.  If you continue to wait until the end of the year or beginning of 2010 you might find that mortgage rates are going to be in the 5.5% range or higher.  By refinancing now you are likely to lock in somewhere in the 5% range which could save you hundreds of dollars a month.

There are many mortgage lenders out there that are advertising 30 year fixed mortgage rates well under 5%.  While not all borrowers will have access to these rates it is still a good idea to at least apply and see which rate you qualify for.  You never know, you may qualify for a rate much lower than you ever expected.

Before you continue the mortgage refinance with any lender make sure to do your research.  It is a long and difficult process and you do not want to go through this process with a lender that is a huge pain.  With the amount of financial institutions vying for your business it should not be hard to find a mortgage lender that is willing to work hard with you and for you.

Please make sure to return to Subprime Blogger for all your mortgage and financial news. To stay up to date on the current state of finances make sure to bookmark the current news category below.

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Author: Alan Lake

Category: 30 Year Fixed Mortgage Rates

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