Maybe everyone knew it but nobody wanted to actually say it. Or maybe it's just too hard to tell sometimes, but it's official: we're in a recession. That's a bit of a downer to say the least, but it could be effecting mortgage rates positively.
30-year mortgage rates have been dropping steadily for a month now, bottoming at 5.89% last week and currently at 5.64% this week. 15-year mortgages went from 5.66% to 5.36% in the same amount of time. Market analysts report that this trend will continue as a direct result of the United States Government's response to the country's economic crisis.
Some analysts see rates dipping into the low 5%. As the recession continues into 2010 the feds will want to free up frozen consumer spending and that means more affordable mortgages.
When you look up and see gas prices dropping by the day you probably get excited and cross your fingers, hoping that it never stops. Well, keep the fingers on your other hand crossed for the housing market.