Could Mortgage Rates Hit 2 percent?

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

7 Dumb and Costly Moves Homebuyers MakeBorrow

This Free Software Brings Old Laptops Back to LifeMore

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Beware These 12 Common Money MistakesCredit & Debt

21 Restaurants Offering Free Food Right NowSaving Money

17 Ways to Have More Fun for Less MoneySave

House Hunters: Beware of These 6 Mortgage MistakesBorrow

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

The True Cost of Bad CreditCredit & Debt

10 Companies With the Best 401(k) PlansGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

6 Stores With Awesome Reward ProgramsFamily

6 Ways to Save More at Lowe’s and The Home DepotSave

6 Healthful Treats for Your DogFamily

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

Where to Sell Your Stuff for Top DollarAround The House

8 Ways to Get a Good Price on a Shiny New AutoCars

Ask Stacy: How Do I Start Over?Credit & Debt

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

30 Awesome Things to Do in RetirementCollege

14 Super Smart Ways to Save on TravelSave

The Rich Prefer Modest Cars — Should You Join Them?Cars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

With mortgage interest rates matching or beating their record lows, there's never been a better time to finance a house. But will rates fall further?

“Could Mortgage Rates Hit 2 percent?” That’s the question posed by Marilyn Lewis of MSN Money after mortgage interest rates matched or beat their all-time record lows last week. 30 year fixed mortgages averaged 3.49 percent while 15 year fixed mortgages set a new record low at 2.77 percent. And rates could go lower thanks to a plan to buy $40 million in mortgage-backed by the Federal Reserve.

The Fed said last week it would buy $40 billion every month in mortgage-backed securities until the labor market improves substantially. The program, known on Wall Street as “QE3,” will likely lower interest rates for mortgages and also help some people refinance their home loans.

But will you soon be able to find a mortgage or refinance at only 2 percent? The experts aren’t so sure.

HousingWire and Bankrate.com both suggest an upcoming increase in the fees Fannie Mae and Freddie Mac charge lenders will flow through to borrowers, keeping rates higher than they otherwise might be. The Financial Times says rates won’t hit 2 percent because a heavy demand for mortgages means banks wont need to compete as hard for your money.

For more information (and some video) check out the original article on MSN Money. And if you’re looking for a new mortgage or a refinance, don’t forget our Mortgage Search. It can help you find the lowest local rates.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: Ask Stacy: What’s the Best Way to Borrow?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 2,060 more deals!