Mortgages in Greenville, NC - Last week the US Treasury discussed purchasing mortgage loans from Fannie Mae, Freddie Mac and the Federal Housing Administration in an effort to push mortgage rates to 4.5%. At first, I thought it was just a rumor, but after further investigation, it looks like this is real possiblity.
As a reaction to the hype and open media discussion on the rates hitting 4.5%, rates actually dropped below 5% in the ladder part of last week, almost reaching 4.5%.
I'm not a economist by any stretch of the imagination, but I really believe that we'll see rates hit 4.5% on 30 year fixed and possibly lower. Low mortgage rates won't fix the US economy, but it's a much more tangible benefit to the average US family than a drop in the Fed Funds Rate. For this reason, I believe that the US treasury will follow through with the plans to purchase mortgage debt and effective drive interest rates to their lowest rates is US History!
Sunday, December 7, 2008
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