Mortgage Rates Finally Starting to Decline

One of the major problems that the Fed has had in recent months is the fact that fixed mortgage rates haven't been declining.  The rate cuts were supposed to lower borrowing costs for individuals to help stop the decline in home prices and spur economic activity.  Rates declined for the majority of 2007, but as credit markets got more and more tied up at the start of this year, fixed mortgage rates actually spiked in the face of massive Fed Funds Rate cuts. 

In recent days, however, 30-year fixed mortgage rates have begun to decline.  On March 6th, the average 30-year fixed rate stood at 6.12%.  This rate stood at 5.66% as of yesterday, and they are declining even more today.  If mortgage rates can keep going lower, it will go a long way in helping out the struggling real estate market.

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Comments

[Stephen]

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Stephen
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