Six Straight Weeks of Mortgage Rate Declines
Posted on | December 12, 2008 | 4 Comments
For the sixth straight week, the 30 year fixed rate mortgage declined. This week it decreased from 5.53% to 5.47%. In October, the 30 year fixed rate was almost a full point higher at 6.46%. The actions by the government are proving to work as this is a four year low. The strong actions by the government could very well push rates below 4% as stated earlier this week on Subprime Blogger.
The decline in home loan rates was a direct result the United States government committing $600 billion to bail out Fannie Mae and Freddie Mac along with other mortgage related agencies. The Federal Reserve hinted today that it was going to purchase some Fannie Mae and Freddie Mac bonds which will likely push rates down even further.
While this is great for the individual homeowners who can access this credit, it is still just the first step in assisting the housing market. Many borrowers would like to refinance at such a low rate, but the struggling economy has forced them to use too much credit driving down their rating. It may also be the case that they do not have a sufficient amount of equity to refinance or get a new home loan.
Are you going to refinance at such low rates or are you going to stick it out until rates go below 4%?
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December 12th, 2008 @ 7:12 pm
[...] Random Feed wrote an interesting post today onHere’s a quick excerptFor the sixth straight week, the 30 year fixed rate mortgage declined. This week it decreased from 5.53% to 5.47%. In October, the 30 year fixed rate was almost a full point higher at 6.46%. The actions by the government are proving to work as this is a four year low. The strong actions by the government could very well push rates below 4% as stated earlier this week on Subprime Blogger. The decline in home loan rates was a direct result the United States government committing $600 billion [...]
December 13th, 2008 @ 3:00 pm
[...] Subprime Blogger Six Straight Weeks of <b>Mortgage Rate</b> Declines [...]
December 13th, 2008 @ 5:08 pm
[...] Subprime Blogger Six Straight Weeks of <b>Mortgage Rate</b> Declines [...]
December 16th, 2008 @ 1:42 pm
It’s good that there are steps being taken in the positive direction instead of the negative one.