Consumer Credit Blog

...Consumer Credit Resources

 

Mortgage Rates

...now browsing by tag

 
 

Lower Mortgage Rates?

Friday, January 2nd, 2009

How Low Will They Go?

It seems that the current credit crisis may have at least one silver lining. That is mortgage rates for both new and refinance mortgages are approaching historic lows and they are likely to go even lower.

It was reported in the Seattle Real Estate News today that the Federal Reserve expects to start purchasing buying mortgage backed securities from lenders later this month. This move will free up lenders to start writing new loans once the bad mortgage debt is off their books.

Many mortgage lenders have already noted a substantial increase in requests for refinancing. While the National average is around 5.25 percent for a 30 year fixed mortgae a quick look today showed it would not be hard to track down a refinance in the 4.5 percent range right now with no points. If you are one of the fortunate ones who still has a solid credit history this may be the time to start watching for a lower rate.

Keep in mind not everyone will qualify for these ultra low rates. A solid credit score and at least 20 percent equity or down payment will probably be required. Jumbo loans or those over $417,000 will almost certainly pay a higher rate by as much as 3 percent. Even so it may pay to start watching the rates now.  Those  with a present mortgage of 6 percent or higher are likely to benefit from a refinance in the days and weeks ahead on a 30 year fixed mortgage or refinance.

It’s possible that as the rates lower more new mortgages will start to move some of the inventory of homes off the market later this year. For now, let’s see how low they will go.

Related Blogs

Posted in Mortgage Rates | No Responses »