Mortgage Rates May Fall to WWII Low on Fed Purchases

by Brian Louis, Bloomberg, March 19, 2009 March 19 (Bloomberg) -- U.S. mortgage rates may fall to the lowest since World War II on the Federal Reserve's plan to buy up to $300 billion of Treasuries and increase purchases of mortgage-backed bonds. ... Rates for 30-year fixed home loans dropped to 4.98 percent this week, Freddie Mac said today. They may reach 4.5 percent as the Fed's purchases progress, said Mike Larson, real estate analyst at Weiss Research in Jupiter, Florida. ... In 1945, the average mortgage rate was 4.7 percent, Larson said, citing the book, –A History of Interest Rates,– published by Rutgers University Press. Read the complete article here.