Good Mortgage News: Lower Rates

Nov 30, 2007

Although banks are still reeling from the ongoing mortgage crisis, qualified buyers who can actually afford to take out a home loan should be in a brighter mood these days.

Mortgage Rates have recently dropped to two-year lows.

The 30-year fixed mortgage rate fell to a more than two-year low in the week ended Nov. 29, slipping to 6.1 percent from 6.2 percent the prior week.

Freddie Mac also reported that the 15-year fixed loan rate fell to 5.73 percent from 5.83 percent over the same period, and that interest on five-year adjustable-rate mortgages dipped to 5.86 percent from 5.88 percent.

Meanwhile, the one-year ARM bumped up to 5.43 percent from 5.42 percent.

Freddie Mac chief economist Frank Nothaft attributed the decline in mortgage rates to worries about an economic downturn tied to the weak housing and credit markets, which has pushed down interest rates on U.S. Treasuries.

Source: Baltimore Sun (11/30/07)

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