Good news for Home Buyers! Mortgage Rates Fall!

After the Federal Reserve announced this week that its $85 billion per month bond-buying program will remain, mortgage rates dived.

 

The program had helped keep mortgage rates low, but fears mounted this summer that the Fed would begin winding it down. This caused mortgage rates to move up, increasing borrowing costs for home buyers and slowing the recovery of the housing  market.

 

The Fed’s decision has reinforced its commitment to holding short-term interest rates near zero through next year and into 2015. The Fed noted that employment is improving, and is optimistic about the “growing underlying strength in the broader economy.”

 

Here are Freddie Mac's reports of mortgage rates for the week ending Oct. 31: 

 

Type of Mortgage	Today’s Rate 10/31/13	Last Week 10/24/13	October 2012
30-Year Fixed	4.10%	4.13%	3.39%
15-Year Fixed	3.20%	3.24%	2.70%
5-Year ARM	2.96%	3.00%	2.74%
1-Year ARM	2.64%	2.60%	2.58%

The Fed's decision should help sustain low mortgage rates in the near future, says Frank Nothaft, Freddie Mac’s chief economist.

 

That's good news for home buyers and sellers!

 

Courtesy: Realtor Magazine

 

Looking for a home? Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

Want to know what your home is worth? Call me at 803-348-9922 or email me at vsashikant@gmail.com.

 

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