Low Rates Help Consumers - 10/14/09
For Immediate Release
8:00A.M. PT, October 14, 2009
Fredrick J. Bond, SVP/Mortgage Division Manager
(San Luis Obispo,
But a surprising development is that although the U.S. economy is gaining strength, mortgage rates have remained near all-time lows. Our current new recovery hasn’t influenced rates much.
A big reason is that the Federal Reserve is determined to keep rates low until it’s certain that economic growth is strong enough to be self-sustaining. Raising rates too soon could discourage businesses and consumers from investing for growth.
TIME OF OPPORTUNITY
Late this summer rates on 30-year home loans remained more than one percent below where they were a year earlier. Someone borrowing $250,000 would save $200 each month as a result.
Home purchasers are finding it’s easier to move into a house they’ll love for years as a result of today’s loan opportunities. Existing owners interested in refinancing also can save hundreds of dollars every month now.
Some owners are choosing to move into a 15-year mortgage, so they can pay off their home loan faster. Rates on 15-year mortgages are even lower than what’s available on 30-year loans. Yet these beneficial conditions won’t last indefinitely. Interest rates will move up next year, predicts the Mortgage Bankers Association.