Renewed Push for Lower Mortgage Rates

Homes for sale in Encinitas may see mortgage rates continue to hit record lows. Homes for sale in Encinitas may see continued low mortgage rates as a result of the Federal Reserve’s Quantitative Easing or QE3.

It was announced on Thursday that the Fed would begin it’s third round of Quantitative Easing, QE3, which will purchase $40 billion per month in mortgage-backed securities guaranteed by Freddie Mac and Fannie Mae in order to continue to keep low interest rates.

When the first round was carried out in 2010, it resulted in mortgage rates dropping below 5%. While low interest rates by themselves will not aid potential homebuyers to raise large down payments to purchase a home or make home values rise on Encinitas real estate, buyers are now responding to lower mortgage rates. Last week the demand for purchase loans was up 8% from the week before and this was up 7% from a year ago.

These low mortgage rates continue to aid the market of Encinitas homes, with 30-year fixed mortgages at 3.41% for homes in Encinitas and a 15-year fixed mortgage seeing rates of 2.71%.

When you are considering purchasing a home consult an Encinitas Realtor to find out how you can take advantage of these low interest rates and get the home you have been searching for.

 

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