Mortgage and Real Estate Blog

One of the projected goals of the mortgage bailout at the beginning of the week was the hope that mortgage interest rates would drop and that lenders would be better able to get the money out there to borrowers who need or could benefit from it. For those who just look at the news about interest rates that’s been reported during the last day or so, it looks as though it may be working out:

(source)For the first time in months, interest rates slipped below 6 percent this week, prompting Donna Gillis to immediately refinance the mortgage on her D.C. rowhouse.

“It would have bothered me not to be in the 5 percent range, even though the monthly payment would not have been much more,” said Gillis, who locked in a rate of 5 7/8 percent on Monday.

A weekly survey released by Freddie Mac yesterday shows that 30-year fixed rate loans averaged 5.93 percent this week, down from 6.35 percent last week and 6.31 percent at the same time a year ago.

In other words, for those who are thinking about buying a home, there’s good news: there’s going to be an opportunity to consider getting a mortgage with a better interest rate. For those who are planning on refinancing their home loans, the news is equally good.

Whether or not the trend continues is something that will be seen over time; for now though, the dip is still something worth taking a look at.

This entry was posted on Friday, September 12th, 2008 at 10:14 pm and is filed under Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.