According to a Staff Report in the December 5, 2008 issue of The Cleveland Plain Dealer, average (30 yr) home mortgage rates dove down to 5.53% this week; reportedly the largest one -week drop in 27 years (from 6% last week). Rates were around 6.5% in October of this year.
Is there hope for (more good news for) homeowners? Hopefully. According to Jeannine Aversa’s (Associated Press) article in The Cleveland Plain Dealer today, Federal Reserve Chairman Ben Bernanke has recently outlined a number of “promising options” to reduce further foreclosures. The alternate plans include: (i) allowing certain homeowners to refinance into more affordable, federally insured mortgages; (ii) having lenders forgive portions of outstanding loans for certain borrowers; (iii) having the government purchase certain delinquent or at-risk mortgages; and (iv) reducing interest rates on certain loans to 3% for 5 years.
Let’s hope there is more help on the way soon.
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