Decreasing Mortgage Rates

The 30-year fixed mortgage rate average fell back below 5% this week, reports this article from the LA Times. Rates had risen as a result of the struggling economy, but are now falling again, which is good news for borrowers. In addition to the 30-year fixed rates, 15-year fixed rates and adjustable mortgage rates also decreased.

While this is good news, the survey assumed that borrowers have good credit and paid a 20% down payment. It did not say what rates were for borrowers with average credit, or for those who payed a smaller down payment.

The article also states that rates may be lower because of the Federal Reserve's program to buy mortgage bonds, which ends at the end of this year's first quarter. It is possible that rates may increase again with the end of the program.