Mortgage Rates to Fall Below 5%
Posted on 19 March 2009 by Jamie Beck
Rates on traditional mortgages are expected to fall below 5%, and some lenders are already lowering their rates today.
Mercury News reports:
“The Federal Reserve threw more than a trillion dollars at the gridlocked credit and housing markets Wednesday, sending a key interest rate down by a historic amount. Mortgage rates, already low, were expected to drop well below 5 percent in response. Mortgage brokers were elated. Economists said the move could buoy the California housing market by encouraging purchases and refinance activity, possibly hastening recovery from one of its worst slumps ever.”
While most borrowers seeking creative financing won’t get the lowest rates, there are some ways to take advantage of sub-5% rates without taking out a traditional loan.
Rates on low-downpayment FHA loans should fall along with traditional bank loans. You may also be able to convince property owners offering seller financing to lower their interest to a more competitive rate.