Pondering interest rates

Low mortgage rates surprise experts

U.S. mortgage rates are lower than they were a year ago and are falling. According to Freddie Mac, the rate on the average 30-year fixed-rate mortgage fell to 5.65 percent in the week that ended May 26, the lowest rate since mid-February and below the 6.32 percent level of a year ago.

Virtually every expert predicted major increases in rates as part of their projections for 2005. We are nearly half way through the year and rates are holding steady. This certainly bodes well for the continuing of the frothy (thanks Alan) real estate market.

Low Mortgage Rates Defy Expectations [Washington Post]

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