Mortgage Rate Hits Record Low

The rate on 30 year fixed rate mortgages dropped to 3.40 percent which is the lowest since long-term mortgages began in the 1950s. The Fed is spending $40 billion a month to buy mortgage-backed securities. The goal is to lower mortgage rates and help the housing recovery. Fed Chairman Ben Bernanke says the program will continue until there is substantial improvement in the job market. Some economists expect mortgage rates to fall even further because of the Fed’s bond purchases.

Associated Press  September 28, 2012