Mortgage Rates at 37 Year Low

Mortgage rates have dropped to the lowest rates since 1971. The 30-year mortgage is now reported by Freddie Mac at 5.19 percent. This becomes the seventh week in a row mortgage rates have dropped and mortgage refinance applications have risen. Sustained lowering of rates have been supported by Federal Reserves announcement of the purchase of $500 billion in mortgage-backed securities and moving the Fed funds rate to a target of 0.25-0 percent. Despite the sustained drop, mortgage experts are cautioning borrowers sitting on the sidelines for lower rates of the risk of a rapid rate reversal.