Today, Freddie Mac (Stock Quote: FRE) announced that average interest rates on conforming 30-year mortgages dropped from 5.03% to 4.98%. Those mortgage rates are poised to drop even further as the Federal Reserve prepares to inject more than a trillion dollars into the economy in an effort to loosen frozen credit.
Are you interested in finding low mortgage rates in your neighborhood? Use our mortgage rate search on BankingMyWay, where you can search by zip code or state to find local mortgage rates.
MainStreet asked people connected to the housing industry what affect the rate will have on consumers and the market as a whole.
Here's what folks are saying:
“I would hope that this means that banks are more likely to lend and that people who didn’t suffer as much financially get out into the marketplace. I think that was what the Fed was hoping. That’s definitely what we’re hoping for.”
Associate attorney, Adams Law Group
Las Vegas, Nev.
“In terms of rates being low, the current rate is better than 6.5%. But you’ve still got more stringent guidelines than you did a year ago. No matter how much you’re putting down, banks are still going to look at your credit score. You can’t just throw out a rate.”
Former loan officer, 1st Security Bank of Washington
“It’s great because it’s cheaper to borrow money. It’s better for the buyers because now the prices are falling back in to their price range. I think that sales are going to go up.”
Senior associate salesperson, CitiHabitats
New York, N.Y.
“I’m working on a flyer to past clients who contacted me more than three months ago about refinancing their homes. I hope that this will stir up the market but you still have restrictions on underwriting guidelines for people with credit scores under 740.”
Mortgage broker, Atlanta Mortgage Group
"I was at 4.5 on a 30-year fixed mortgage yesterday. I can't wait for tomorrow's rates."
Community organizer and prospective home buyer