Rates for 30-year home loans remain close to record lows
By Edward Perez
(Sothbey's International Realty)
The average rate for a 30-year fixed mortgage was 5.07 percent this week, down from 5.08 percent a week earlier, mortgage company Freddie Mac said Thursday. Rates, while above the record low of 4.78 percent hit in the spring, are still at attractive levels for people looking to buy a home or refinance. Rates should stay low for another month or two as government efforts to keep them low remain effective. But it won’t last forever. Rates will eventually trend upward, as the economy starts to turn around and concerns return about how long overseas investors can stomach massive levels of U.S. debt. To prop up the housing market and help the economy revive from the worst recession since the 1930s, the Federal Reserve is spending $1.25 trillion on mortgage-backed securities, which has drive...
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