How Low Can We Go? Interest Rates On 30 Year Fixed Keep Hitting New Lows
Ed Craine
January 12, 2009
For the 10th consecutive week, interest rates on 30 year fixed rate loans have set a new record low. This week, rates dropped to an average 5.01%, which is the lowest average recorded since Freddie Mac started tracking rates in 1971. I have to admit, this has got me thinking...just how low can they go? And more importantly how long can they stay this low? Well, many economists are predicting rates to remain low for at least several months, due to the FED's buying of mortgage backed securities from Fannie Mae, Freddie Mac and Ginnie Mae. However, given the volatility of the market and overall economic climate, I'm leery of betting on that.
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