Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.98 percent during the week ended March 19 from 5.03 percent the prior week, marking the lowest rate since 4.96 percent in mid-January 2009. Experts believe that rates could fall further in response to the Federal Reserve’s announcement that it will add $1.2 trillion to the economy to help alleviate the credit crisis.
I certainly think that rates will continue to fall, but not for too much longer than the next 45 days. I simply cannot see how the US Treasury could afford to continue buying mortgage backed debt. Prepare to lock in your refinance rates!