Freddie Mac reports a decline in the 30-year fixed mortgage rate to 5.47% during the week ended Dec. 11 from 5.53% the prior week and 6.11% a year ago. Some lenders are locking in even lower rates as they build on momentum started when the Federal Reserve announced plans last month to purchase a substantial number of mortgage-backed securities, with HSH Associates and Inside Mortgage Finance reporting interest on 30-year fixed loans at 5.33% and 5.09%, respectively.
Freddie Mac chief economist Frank Nothaft says mortgage rates also were driven downward by the growing recession and rising unemployment.
On top of this drop from last week, the Fed is probably going to drop the lending rate to 0.5% today which should drive mortgage rates even lower this week. If you are that investor who has been sitting on the sidelines for the past year, your time is coming! 2009 will be the year of the patient investor.