30 Year Fixed Mortgage Rates hit Record Low Continue Decline fueled by Fannie Mae Freddie Mac; Low Interest Rates help Recovery?
Posted on | July 31, 2010 | No Comments
Fannie Mae and Freddie Mac drove the average rate for a 30 year fixed rate mortgage down to 4.54 percent this past week. Mortgage rates for U.S. homes set a record low for the sixth straight week. This is great news for the viability of economic recovery and the the reform legislation that should be prompting it all. The economy has generally been stagnant lately and the housing market has been struggling. President Obama initiated reform and a stimulus package in hopes of giving the economy the boost it has needed to recover from the recession. Positive effects of the stimulus have been thin lately and experts are beginning to wonder what side of the fence the economic recovery efforts will fall.
Republicans specifically are being critical of the recovery efforts managed by President Obama and are voicing these “concerns” as the fall election time draws nearer. They site high numbers of Americans that are unemployed and the high numbers that continue to file for unemployment benefits for the first time. The low mortgage interest rates may give an extra boost to the economy by potentially freeing up money that Americans can possibly spend or allocate elsewhere. Over time, the hope is that this will strengthen our overall economic well being. Democrats hope this happens by election time.
Author: Stephen Johnson