How Low Can We Go? Interest Rates On 30 Year Fixed Keep Hitting New Lows

Ed Craine
January 12, 2009 — 1,325 views  
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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.

My guess is that rates will sooner rather than later, stop declining. How long they'll stay at these historic lows though, is anyone's guess. All the same, with interest rates like these, and home prices still falling, it's a fantastic time to be a first time home buyer, an investor. Likewise, if you own your home, it's a phenomenal time to refinance into a fixed rate loan -either 15 year or 30 year- as you may stand to save yourself a fortune in interest over time.

Give us a call at 415-406-2330 or send me an email at [email protected]  to make the best use of your money today!

Ed Craine


Ed Craine is the CEO of award winning Smith Craine Finance, one of the oldest independent Mortgage Companies in San Francisco, California. A 25+ year veteran of the real estate financing industry, Ed has originated and negotiated loans in excess of $2 billion, to include both commercial and residential properties. He has simultaneously held such notable positions as Vice President of the California Association of Mortgage Brokers (CAMB), as well as serving as the Public Relations Committee Chairperson of the 5,000 member strong association during 2007, the year in which the mortgage industry received more media attention than in recent history. Ed currently also serves as 1st Regional Vice President of the Certified Commercial Investment Member Institute (CCIM). He will be inducted as Vice President of the Southwest Region of CCIM in September 2008.