Mortgage Rates May Be Headed for Record Low

Mortgage Rates May Be Headed for Record Low

About two months ago, the Federal Reserve raised its funds rate for the first time in years. Since then, however, the 30-year fixed-rate mortgage has been dropping. "Mortgage rates are going down again, and it's good for borrowers, but is it really good for the housing market and the broader economy? The answer is no," said Guy Cecala, CEO and publisher of Inside Mortgage Finance. Some analysts say rates could even fall into the 2 percent range. “It would help those on the low end but could hurt jumbo loan borrowers,” CNBC reports. “Banks, which generally hold these larger loans on their books, would not want to lend in that environment.”