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Mortgage rates fall below 5%

March 19th, 2009 Posted in News by Paul Havemann | Leave a Comment

Largely in response to the Fed’s promise of injecting more money into the economy by buying over $1 trillion worth of Fannie and Freddie mortgage backed securities (MBS), the 30-year fixed rate mortgage fell to below 5% today:

By the close of business on March 19, the 30-year conforming FRM fell to 4.94%, according to Keith T. Gumbinger, a VP at HSHAssociates.com. That’s a fall of nearly a quarter percent since Wednesday.

That’s substantially lower than the 5.04% seen in January, which at that time was the lowest rate in about 50 years.

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