Interest Rates Dropping

We’ve had a flood of good economic news in the past day or two, but mortgage rates have held their own.

The Fed’s statement offered muted optimism that the economy is improving and that housing has stabilized.  Jobless claims were slightly lower and the stock market is rallying.

Still, mortgage rates have held steady.

The FHA loan rate dipped back to about 5% with no points in the past two trading sessions.  We’ll see if today’s rally holds up, but that is an incredible rate when you consider that we’re only 4 months away from the Fed no longer subsidizing rates.  The difference between buying a home today and buying a home in 4 months could be a full 1%.  If so, today’s homes look even more affordable.