4.5% Mortgage Rates

4.500% Mortgage Rates

Mortgage rates are hovering near 5.00%. These are the lowest conforming fixed-rate mortgages we have seen since 2003. Economic weakness and recent actions by the Fed and the Treasury are driving these rate declines.

The Fed and the Treasury are looking at additional programs to boost the economy. On December 3, the Treasury confirmed that it is considering a plan which would offer below
market mortgage rates for select loans used to PURCHASE homes. The lower rates would NOT be available for refinancing loans. At this point, it is unclear if, when, or in what form this latest idea will be acted upon. As we have seen recently, most notably with the $700 Billion TARP Rescue Plan, government programs often change significantly before their implementation.

My Advice - Take the amazing rates paired with lower housing prices and maximize your investment opportunity in your primary residence or investment real estate.