Rates Are Back To The Lows Of April 2009

Lowest Mortgage Rates Since May of 2009

During June, July, August and September of 2009, the Freddie Mac PMMS average on a US 30-year fixed rate mortgage (FRM) never fell below 5.00%. Current mortgage rates are back in the 4s! As of October 8, 2009, the average US 30-year FRM is 4.87% costing 0.7% points.

Mortgage Quotes Should Be Close To Average

Even before you start shopping refinance rates, check with the published averages for your area. Mortgage quotes can vary by rate, points, and costs from lender to lender. Let the lender know that you are familiar with the published average and that you expect your mortgage quote to be fair.

Refinance Rates Give Homeowners a Chance To Improve Cash Flows

Studies show that homeowners who are able to refinance and keep more of their money each month do a lot to improve the economy. A homeowner who has more money each month is in a better position to pay debt obligations, spend, and save. Check current refinance rates to see if you might be able to improve your financial situation.

What Rates Might Do in the Future

Federal Reserve Chairman Ben Bernanke has said that interest rates should remain low for an extended period of time. This seems logical given the weak state of the economy. However, there has been unprecedented amounts of stimulus pumped into the world economy since the banking crisis began more than a year ago. Other Federal Reserve members, such as Kevin Warsh, have warned that when the stimulus takes hold and the economy starts to turn, the Fed will have to act very aggressively. This could mean that if inflation becomes a threat, interest rates could go up very quickly. For now, the Fed has taken a wait and see position.