Rates on U.S. 30-year mortgages with fixed interest rates dropped for a ninth consecutive week, reaching their lowest level in 37 years, according to a survey released on Wednesday by home funding company Freddie Mac. Mortgage rates for 30-year fixed-rate mortgage dropped to an average of 5.10% for the week ending Wednesday, down from the previous week’s 5.14%, Freddie Mac said. Since Freddie Mac started the Primary Mortgage Market Survey in 1971, the thirty-year home mortgage rates have never been lower. FHA rates declined to 5.25% this week and many believe will promote new opportunities in 2009 for first time homebuyers. Mortgage rates dropped significantly after the Federal Reserve introduced a plan to purchase $500 billion of mortgage loan securities backed by government ie. sponsored enterprises, Fannie Mae, Freddie Mac, and Ginnie Mae.
Internet advertising firm, KMG president, Jason Cardiff said in a statement yesterday, “Rates for home mortgages will decline to unimaginable levels in 2009, because the American people need an incentive to start taking risks again in buying real estate.” Cardiff continued, “the banks need to trust restored as well and the only motivating reason for consumers to start borrowing again will be low mortgage rates.” Read the complete mortgage article>
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