National 30-year mortgage rates just fell to 4.85% – the lowest rate since weekly survey records began in 1971.

Bloomberg News reports:

“The Federal Reserve said March 18 it will purchase up to an additional $750 billion of mortgage-backed securities from Fannie Mae, Freddie Mac and Ginnie Mae to support home lending. The Fed is trying to lower rates by reducing the supply of outstanding mortgage bonds, boosting their price and lowering yields. That would allow banks to reduce the rates on new mortgages and still sell mortgage securities at a profit.

“The move by the Fed was especially aggressive,” said Donald Rissmiller, chief economist at New York-based Strategas Research Partners.”

Those who can qualify for the tough standards now set by banks will benefit from extremely low rates on these fixed loans. If you’re looking for creative financing ideas (other than FHA loans), your rate will probably be quite a bit higher than the 4.85%. However, you should benefit as seller financers and others try to compete in the market.

See Also:

FHA Mortgage Guide

Tags | creative financing, interest rates, mortgage rates