Mortgage Rates Rise as Federal Reserve Cuts Short-Term Rates
The average 30 year fixed rate mortgage rose to 6.21% this past week, as the Federal Reserve reduced short-term interest rates for the second time in an eight day period. Nonetheless, mortgage rates are still near a historical low, which may have contributed to a relatively strong refinance market, according to the Mortgage Bankers Association.
In Pinal County, AZ, fourth quarter 2007 home resales (sales of existing homes) picked up which may be attributable in part, to attractive mortgage rates and lower home prices.
As short-term interest rates trend downward, borrowers facing rate adjustments on their ARMS may be getting some relief. Moreover, some homeowners with the now infamous subprime loans may be getting a reprieve via rate freezes and loan modifications as an economic stimulus package is being hammered out.
