It seems as though every week agents are reporting on the teetering interest rates. We do not see much deviation from the 5% range but when the rates go below or above that magic number, it gets attention. This week rates rose above 5%. The average rate on a 30-year fixed rate mortgage was 5.05% this week, up from 4.93% a week earlier, mortgage finance company Freddie Mac said Thursday. Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country.
The reason rates have been able to hover week after week near the record breaking low 5% is due to the $1.25 trillion Federal Reserve program to buy up mortgage securities. This program is due to end on March 31, but the Fed has always said it is holding the door open to extending it if the economy weakens. It would make sense to extend the program till at least the time of the Homebuyer Tax Credit expiration. Just another incentive to buy during this Spring Market.
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