Current mortgage rates are higher than just weeks and months ago.
Actions taken by the Federal Reserve that started in the fourth quarter
of last year helped push down mortgage rates during spring. The Fed's
announcement to buy up mortgage-backed securities and long-term
Treasury bonds helped keep these borrowing rates down, only to see them
climb back quickly beginning in May. There is hope, however, that
mortgage rates
will drop back down to rates the nation saw in March and April. In
March borrowers could lock in rates on a 30-year FRM at a national
average of 4.22%. For the first time in weeks these borrowing rates
began to drop. On Monday morning of this week rates for 30-year FRM's
averaged 4.91%. By the afternoon borrowers could lock in those mortgage
rates at 4.72%, on average. The continued drop of Treasury yields will
likely help continue this trend for the short term. The Federal Reserve
is also worried about the recent rise in
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