Why this year for 30-year fixed mortgage rates

The Fed helps you see some mortgage tranquility

As a major part of the stimulus package, the Federal Reserve has bought most of 2009's mortgage-backed securities. For the potential mortgage customer, this is a windfall as interest rates have lowered and stabilized with current federal aid. A recovering economy will only see these rates rise, but for the home loan customer, the time is nigh to catch a low rate for a long-term loan.

30-year fixed mortgages are suddenly a very attractive option

Typically a higher-rate mortgage than an adjustable-rate mortgage, or ARM, the government interference makes 30-year fixed mortgage rates now economically sensible. Fixed-rate home loans, the most classic form of home loan, usually carry terms of 15 years and 30 years, but their higher rates and the longer life of the loan oftentimes scare customers into the cheaper-yet-riskier adjustable mortgages. And while the lower current Fed-influenced rates benefit both ARM buyers and longer-term mortgage customers, interest rates will rise and those with an ARM or flexible rate will be paying more, while those in a fixed mortgage rate won't. The government rate tranquility has seen stable rates this year, varying no more than one-eighth of a point.

Time is of the essence. Plugging one's current stats into a mortgage calculator and figuring in the current stable lower rates might just put a whole bunch of potential mortgage customers on the path to a 30-year fixed rate mortgage.

Ben Bernanke and his crew might very well stimulate the country in ways heretofore never considered.

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