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 January 03, 2009

Interest Rates on 30 Year Fixed at All-Time Lows
For nine straight weeks, interest rates on a 30 year fixed mortgage fell. The latest drop is the lowest we have seen in nearly forty years, falling a little more than five percent for the week. In fact, companies like Freddie Mac have not seen these levels since they began the Primary Mortgage Market Survey in the early seventies. Futhermore, this is the third back to back record low for falling interest rates.
Rates began falling almost as soon as the Federal Reserve stated that they would be buying mortgage securities from government backed companies like Fannie Mae and Freddie Mac, up to five hundred billion dollars. Many analysts are projecting that the recent news will continue to drive down mortgage rates.

The economy has been hit with a multitude of obstacles and none has been hit harder than the housing market. With the recent and current foreclosure crisis and banks upholding stricter lending standards, it seemed that the housing market was still far away from recovering. However, many buyers have been waiting patiently for the right moment and many are agreeing that the moment could be now, or in the first half of 2009. With the recent stock market crash, many experts are saying that currently there is not a better investment than to buy a home.

Searches for "current mortgage rates" and "Fed rate cuts" are at all-time highs, meaning that there are a lot of people anticipating more to come. There also seems to be more optimism toward the new administration and what their new stimulus plan might bring to the table. Some have speculated that mortgage rates would decline to around four percent, but many experts think that's wishful thinking. Whatever does happen, make sure to follow our blog because we will do our best to make sure you are informed as soon as the news breaks. Happy 2009.