Friday, December 04, 2009

Mortgage Rates Record Low

The average interest rate for 30 year loan dropped to 4.71% the lowest since 1971.  15 year mortgage rates reported at 4.27%.  This is a result of Federal Reserve pumping $1.25 trillion into mortgage backed securities in an effort to drive down rates and make home buying more affordable and stimulate the real estate market.  This money is set to run out this spring.  It is difficult to say how long these low rates will be available.  If you thinking about purchasing a home, do not wait.  It is predicated as the real estate market normalizes interest rates will start increasing.  Buy more home for the money now while interest rates remain low!