By the end of last year when the Federal Reserve decided to raise the record low key interest rates for the first time in a long time, most of the future homebuyers thought that cheaper mortgage rates will soon become a distant dream. But, surprisingly that has not been the case.
It's quite evident from a statement by Mark Hamrick, a senior economic analyst at Bankrate. He said, "This is evidence that the Federal Reserve isn't the sole determinant of U. S. mortgage rates."
Data from Freddie Mac showed that facing the fourth consecutive week of slide, the 30 year mortgage rate dropped fell to 3.79 percent. There was a drop in the 15-year fixed mortgage rate too as it slipped to 3.07 percent.
On the other hand, looking at the market turmoil the Federal Reserve decided to keep the key interest rates unchanged during their recent policy meeting. The committee that decides the rate changes will once again meet again in March.
The lower the interest rates better it is for the for homebuyers as an increased interest rate means higher costs for banks to borrow money which ultimately passes on to the consumer asking for a loan.
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