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Is it even possible for the rates to go any lower then this?

I mean isn't the Governen base rates at 0? How could the rate go even lower than this? Can someone explain? by joeerbil17 from Philadelphia, Pennsylvania. Feb 12th 2010 Reply

Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 144 contributions

This rate you are referencing has nothing to do with mortgage rates. It is the rate the FED charges banks to borrow money from the government. Mortgage rates are set based on long term bond rates and mortgage securities indexes which are not set by the FED. Mortgage rates over the last year have been at 30 yr historic lows. They will probably not go any lower than they are right now because of several factors that influence rates. One of them is the governments buying of mortgage securities especially toxic ones, which has helped to keep rates low. This program has been announced as being discontinued shortly. If I were considering a refinance now would be a very good time.

Feb 13th 2010
#223 ranked lender in California - 131 contributions

The federal funds rate is close to 0 - It is the interest rate at which depository institutions lend balances to each other overnight.I see rates going up in the next couple of months .... You can currently get a Home loan at the lowest rates in history I would not get to greedy cause you will be looking back six months from now saying I could have,Should have,Would have - and be kicking yourself in the fanny !!!!

Feb 12th 2010
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