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Mortgage rates rock bottom after debt-ceiling deal

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Data & Research

Mortgage rates rock bottom after debt-ceiling deal

A piece of positive news has come out of the debt-ceiling deal reached earlier this week: Mortgage rates have fallen to levels that are at or near record lows.


By Mary Beth Nevulis, HousingZone Contributing Editor August 5, 2011
home prices, housing market, mortgage rates

A piece of positive news for potential homebuyers has come out of the debt-ceiling deal reached earlier this week: Mortgage rates have fallen to levels that are at or near record lows, according to the Christian Science Monitor.

Interest costs on a 30-year fixed-rate mortgage averaged just 4.39 percent this week, Freddie Mac said – the lowest level this year, down from the already sunken 4.55 percent, where rates had been the week prior. (Those interest rates are for loans in which the borrower also pays a "points" fee of about 0.8 percent of the amount to be borrowed.)

Meanwhile, 15-year fixed-rate loans and 5-year adjustable rate loans hit record-low levels of 3.54 and 3.18 percent, respectively.

Many forecasters continue to warn that interest rates could start rising later this year and into next year, perhaps as high as 5.5 or 6 percent on a 30-year loan.

For more information: www.csmonitor.com/Business/2011/0804/Mortgage-rates-at-record-lows.-Will-that-finally-lift-US-housing-market

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