30-Year Fixed Rate Mortgages Hit Record Lows

Amidst worldwide economic turmoil, investors are fleeing to the safety of U.S. Treasury bonds, thus driving up the prices of these bonds and cutting their yields.

Swiss bonds now have negative yields.

Experts expect mortgage interest rates to drop further in the following weeks.

Report: According to the report, the average rates for 30-year FRMs hit a new low of 4.32 percent this week, down from 4.39 percent last week and 4.44 percent last year. The average mortgage rates for 15-year fixed-rate mortgage, 5-year adjustable rate mortgages, and 1-year ARMs all reached all-time record low. According to the report, 15-year FRMs averaged 3.50 percent, down from 3.54 percent a week ago and 3.92 percent at this time one year ago. Average rates for 5-year ARMs slipped from 3.18 percent a week ago to 3.13 percent this week, while 1-year ARMs averaged 2.89 percent, down from 3.02 percent the previous week. Analysts state that the step taken by Fed will help to lower the US mortgage rates to spur the housing market, which is yet to recover from the subprime mortgage mess and overbuilding from the housing boom. They add that it help the country’s economy to add more money into homeowners’ pockets by enabling them to refinance into lower-rate mortgages.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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