Mortgage Rates Drop After Fed Announcement

Interest Rates FallMortgage rates abruptly dropped last week after the Fed unveiled a third round of large-scale asset purchases known as quantitative easing or QE3.  Although the dollar amounts announced today are smaller than QE1 and QE2, the Fed deviated from past easing announcements and opted for open-ended buying this time.  Not only that, but the buying is exclusively in Mortgage-Backed-Securities (MBS), unlike previous iterations which have had significant Treasury components.

What all this means to real estate is that interest rates for mortgage loans fell and may continue that trend as long as the Fed keeps this up. Bottom line: This is a fantastic time to by real estate or refinance your existing home.

This Weeks Best Interest Rates

30 Year Fixed Rate Loan – 3.375%

15 Year Fixed Rate Loan – 2.625%

FHA/VA Loan – 3.625%  FHA conforming loan amount is $362,000, but it is available up to $625,500 (loan amount may vary per county). Minimum requirement with 3.5% down payment.

Jumbo Loan

30 Year Fixed Rate Loan – 3.625%

15 Year Fixed Rate Loan – 2.75%

New Jumbo Conforming loan amount is up to $625,500 with 20% down payment

Interest rates vary day by day and hour by hour so check with your lender to see what the current best mortgage rates are.

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Published by Diego Loya

Diego Loya is a Realtor - Broker at Home Living Real Estate Brokerage, a Orange County full services real estate company. Over the past 12 years, Diego has helped homeowners sell and buy their homes. He's loves educating and empowering real estate consumers. You can find him on Google, Facebook and Twitter.

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