Mortgage rates drop
The Federal Reserve spent a lot of money yesterday to make mortgage rates fall even lower. So far it's gotten its wish.
Interest rates for 30-year fixed mortgages have dropped to 4.8 percent this morning, according to quotes given on the Zillow Mortgage Marketplace. Yesterday, rates were as high as 5.3 percent before the Fed announced that it's purchasing more mortgage-backed securities and debt from Fannie Mae and Freddie Mac. (How much? What $1.2 trillion can buy.)
The Sun's story today notes that this is aimed at lowering interest rates to combat recession. I know some of you Wonk readers have strong opinions about low mortgage rates, so weigh in:
The order of answers is randomized. And you're welcome to add your own, though no one but me will be able to see your answer unless you also note it in a comment.
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Comments
This is one of the worst things that could have happened for our area. Lower rates will just keep propping up already completely unaffordable and unsustainable housing prices. The long-term implications for all this government debt are also very bad. At some point it's going to need to be paid back.
Posted by: BigDragon | March 19, 2009 9:36 AM