Just when you thought the party was over, Alan Greenspan shows up, hootin' and hollerin'.
OK, so maybe the Fed chairman has never whooped it up, but he has reinvigorated the hopes of Americans who had thought they missed out on low mortgage rates. This morning, Bankrate.com announced that 30-year fixed mortgages dropped to 6.06%, down from 6.44% two weeks ago. Mortgage facilitator Freddie Mac
The Treasury market, and thus the mortgage market, has calmed down now that it's clear that the Fed plans to keep interest rates low for a while. Also, the continued weakness on the employment front also helps keep rates in check.
Will rates once again dip below 6%, a rate not seen since late July? Guessing the short-term movements of interest rates is no more possible than guessing where the Dow will be a week from now. But for what it's worth, Bankrate's survey of experts indicates that two-thirds think rates will drop or stay the same over the next 30 to 45 days.
If you're in the market for a mortgage, either to buy a house or refinance your current loan, you haven't missed out on what are still historically ultra-low interest rates. This is also true for home-equity loans (for college bills or home improvements) as well as car and boat loans and refinancings.
While the debt-free life might be the ideal, smart leverage at low rates can be just as good. To learn more about smart borrowing -- including whether refinancing or a home-equity loan might be right for you -- visit our Home Center, which includes some nifty calculators and other Foolish wholesomeness.
