>Interest Rates at an All Time Low!
There was exciting news this week for potential home buyers and sellers as interest rates reached an all time low! Fixed rate mortgage rates decreased for the third week straight resulting in a rate of 4.01% for 30-year fixed mortgages and 3.28% for 15-year fixed mortgages as reported by Freddie Mac.
“Fixed rate mortgages fell to all-time record lows this week following the Federal Reserve’s announcement of its Maturity Extension Program and additional purchases of mortgage-backed securities,” said Frank Nothaft, Freddie Mac’s Chief Economist. The Maturity Extension Program involves the Federal Reserve selling $400 billion in shorter-term treasury securities by the end of June 2012 and using the proceeds to purchase longer-term securities. By reducing the number of longer-term Treasury Securities in the market long-term interest rates should decrease. We all know that lower interest rates increase consumer buying power, which will hopefully stimulate the economy.