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Record Low Mortgage Rates & ‘Operation Twist’

October 12, 2011

INFO THAT HITS US WHERE WE LIVE…The week before last, the Fed announced ‘Operation Twist,’ where they’ll switch their short term bond holdings to longer term maturities. This strategy wasted no time benefitting mortgage rates. Last week, national average mortgage rates were the lowest since Freddie Mac’s weekly survey began back in 1971. Some academic experts contend mortgage rates may have never been this low–even under a special loan program for war veterans in the mid-1940’s. Potential borrowers should take note.

Those borrowers, however, aren’t jumping into the fray in droves just yet. The Mortgage Bankers Association reported purchase applications were down 0.8% for the week and volume is still down from where it was a year ago. But, hopefully, the present super-low mortgage rates, supported by ‘Operation Twist,’ will get home sales and mortgage applications moving at a faster pace.

Courtesy of George Hagar at Prime Lending
George Hager
Mortgage Loan Officer
4 Venture #100
Irvine, CA 92618
714.309.5665 | P
877.895.1813 | F

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