New Year Same Low Interest RatesBlog, Buying, Market Updates
As the new year begins mortgage rates are remaining low, record lows in fact. It is anticipated that this policy will continue to move the economy towards recovery. Cheap mortgage rates have made home-buying and refinancing more affordable than ever for those who can qualify. Lenders are expected to keep mortgage rates low for borrowers in 2013, but savers shouldn’t expect to make much in return from their deposits. Larger 30 year FHA refi fixed rate loans can be had for 3.250% carrying an APR of 4.224%. (in eligible areas) Shorter term 15 year refi fixed rate loans have been quoted at 2.625% yielding an APR of 2.930%. When it comes to ARMs, 5 year refi loan is on the books at 2.125% with an APR of 2.947% to start with. The Federal Reserve keeps interest rates low to encourage people to borrow. The reserve also encourages others to spend and not save their cash in order to stimulate the economy. Problem is we are going now into our fifth year of these record low interest rates and we still have a very slow growth economy.