The New Buzz - Mortgage Rates

With the first-time home buyer tax credit ending last month, information on the condition of mortgage rates has become a popular topic. The Board of Governors of the Federal Reserve System, following the meeting of the Federal Open Market Committee, stated in a recent press release, "While bank lending continues to contract, financial market conditions remain supportive of economic growth." The Committee also reported, "[they] will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period." Realtor®Mag published news, by Freddie Mac, reporting the average interest rate for 30-year fixed mortgages at 5 percent last week, down from 5.06 the previous week. For a 15-year fixed loan the average was 4.36 percent, down from 4.39 percent. Five-year, adjustable-rate mortgages and one-year ARMs also were down. Locally, Homestar Mortgage was recognized in an article by Providence Business News as a top partner lender of Rhode Island Housing for 2009 and the first quarter of 2010. Homestar Mortgage was at the top of a list of 37 partner lenders and brokers who offer Rhode Island Housing's low-interest FirstHomes100 mortgages. Homestar Mortgage is a preferred mortgage partner of Residential Properties. What does this mean for you? Well, simply stated, mortgage rates remain at a historically low percentage.