A little over two weeks ago, I wrote about a substantial 1% drop in the Mortgage Interest Rates. The decrease in the interest rates was the result of the Federal Reserve’s announcement of their purchase of $600 billion of mortgage-backed securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae.
The mortgage interest rates took another nose dive on December 16th with the Federal Reserve’s announcement of their decision to reduce by .75% the overnight rate to .25%. And the announcement of the Federal Reserve’s continuation of buying back mortgage-backed securities.
The mortgage interest rates are now at 40 year lows. With mortgage companies quoting interest rates of 4.5% – 4.75% for 30-year loans. How long will the rates stay this low? No one knows. But if you a Spring Texas home buyer waiting for the bottom, mortgage interest rates at 40 year lows is the bottom.
One thing to remember about mortgage interest rates is your lender will be unable to lock in an interest rate until you have your home under contract and can provide the physical address of the home.
Jill is the best! She helped my wife and I buy our first home. She really guided us through the... read moreJill is the best! She helped my wife and I buy our first home. She really guided us through the process and always had our best interest in mind. During the closing process, she got us the best deal possible by treating our money like her money. Highly recommend to anyone looking to buy or sell a home. read less