This week mortgage rates remained low at an average of 3.34 percent on a 30 year fixed rate loan with a 0.7 percent average point. This is down from 3.35 last week and 3.91 last year. To keep rates low the Federal Reserve is purchasing each month $40 billion in mortgage backed securities from Fannie Mae and Freddie Mac. The Fed stated the open ended program to do so will continue until the numbers of unemployment improve significantly. The latest forecast from Fannie Mae expects 30 year fixed rate loans to only rise from 3.3 percent in this quarter to 3.5 percent in the last quarter of this year.
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