Mortgage rates have decreased again, after having increased for the last 3 weeks.
In response to a surge in mortgage applications, lenders had raised rates, allowing them to catch up and lower demand. Now rates have been lowered again.
The FED’s unlimited bond purchasing program, including the purchase of mortgage-backed securities, has also been put into place.
Freddie Mac Rates:
30 year fixed – 3.50% (down from 4.06% from 1 year ago)
15 year fixed – 2.92% (down from 3.57% from 1 year ago)
“Similar to other segments of the economy, Freddie Mac also noted that demand is softening. Freddie Mac expects the combined effect of FED action and fiscal stimulus to provide substantial support to the mortgage markets, however.”