Mortgage rates touch the record low
30 year fixed rate Mortgage interest rates again fall for the 11th week in a row.On Thursday the home funding company, Freddie Mac said that in US 30 year fixed rate mortgage interest rate mortgage dropped for 11th week at a stretch to touch a lowest record.
According to Freddie Mac the week ending on 15th January, the interest rate of 30 year fixed rate mortgage was averaged 4.96%. In previous week it was 5%.
This lower mortgage rate has resulted in the deluge for home refinancing loans. People are opting for refinancing to have lower monthly payments and have a respite for the panic stricken consumers from the unemployment, inflation and shrinking economy.
But the huge change in the mortgage rates, haven`t been able to affect much on the demand for home loans. The real estate industry is still not able to get out of the worst housing downturn.
After disclosure of the Federal Reserve`s plan to buy upto $500billion of mortgage securities those are being backed by the government sponsored agencies like Freddie Mac, Fannie Mae and Ginnie Mae. There is also the plan to buy upto $100 billion debt that has been issued by Federal Home Loan Banks, Freddie Mac and Fannie Mae.
Frank Nothaft, the vice president and chief economist of Freddie Mac said that the mortgage interest rate for 30 years fixed rate mortgage is going to record low due to the slowing economy and different government actions.
Since 1971 when Freddie Mac began the Primary Mortgage Market Survey, this is the lowest interest rate for 30 year fixed rate mortgage.
15 year fixed-rate mortgage interest rate was found 4.65% from 4.62% and 1 year adjustable rate mortgage or ARMs has been down slightly to 4.89% from the last week average of 4.95%.
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