Current Mortgage Rates Remain At Historic Lows

Today's Mortgage Rates Are Low, But Will They Last?

According to the December 3, 2009 Freddie Mac PMMS, the average 30 year fixed conforming interest rate is 4.71% costing .7% points. This is the lowest mortgage rates have been this year. This is the best time to get a mortgage quote and start a refinance. Mortgage interest rates are artificially low at the moment because the government is buying mortgage-backed securities (MBS). This MBS purchase program is set to end in March 2010. Fed chair Ben Bernanke has repeatedly said that interest rates should remain low for an extended period of time. But other voting members of the Federal Reserve believe that GDP will continue to grow at about 3% a year and that interest rates should go up naturally along with GDP. If the MBS purchase program expires without a government extension, the exceptional current mortgage rates may begin to go up.

The Latest Mortgage News from Bernanke

In speaking to the Economic Club of Washington today, Bernanke expressed concern that the current economic recovery may not last. He said, "We still have some way to go before we can be assured that the recovery will be self-sustaining." He warned that the economy is facing "formidable headwinds" specifically related to jobs, cautious consumers, and tight credit. Bernanke is currently seeking a second four-year term as Federal Reserve Chairman. Last week, in a hearing before Congress, he heard from more than one angry congressman about the Feds extraordinary actions taken to prevent a second Great Depression. It has been under Bernanke's leadership that refinance rates have remained at historic lows.

Lowest Mortgage Rates Of 2009

4.71% with .7% points is the best mortgage quote from Freddie Mac in 2009. There has been no better time this year to lock in your interest rate and refinance your home loan.