Bankrate, Freddie Mac: Mortgage rates remain low

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates fell to a record low this week in the Bankrate survey while rising slightly according to Freddie Mac’s.

The 30-year fixed rate mortgage dropped to an average of 4.42 percent with 0.35 point from 4.47 percent a week ago, according to Bankrate’s national mortgage survey.

Freddie Mac put the 30-year at an average of 4.21 percent, with 0.8 point, up from last week’s record low of 4.19 percent.

The question at this point is whether rates will continue to fall. The Federal Reserve is poised to begin buying up government bonds in an attempt to push down mortgage rates. However, Bankrate noted that current rates might already reflect the Fed’s move as investors anticipate the Fed’s actions.
Bankrate also noted that the foreclosure debacle that has swept the country in recent weeks could push rates higher as lenders likely will look to recoup additional expenses involved in dealing with the mess by raising mortgage rates.

For the time being, however, Bankrate’s panel of mortgage experts see rates treading water.

(For further information on this week’s surveys, visit, Money and Markets.)