Friday, March 27, 2009

30 yr fixed rates at record lows


Rates on long term mortgages continue to fall:
Interest rates on 30-year mortgages dropped to the lowest level on record this week, adding another incentive for home buyers to leap back into the market.

Mortgage giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages fell to 4.85 percent, down from 4.98 percent last week. That's the lowest in the 38-year history of the company's survey. It's also nearly 2 percentage points off last year's peak of 6.63 percent, amounting to consumer savings of about $225 per month on a $200,000 loan.

Rates have marched steadily downward, in lockstep behind bond yields, since the Federal Reserve announced last week it would pump more than $1 trillion into the economy by buying up long-term Treasury notes and mortgage-backed securities.

ARTICLE: SF CHRON

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