Good news for buyers

Mortgage rates are at their lowest level in 6 months. The average for a 30 year fixed rate mortgage is 6.40%. This is good for home buyers. Not only do they have plenty to choose from but they can also get a low interest rate on their mortgage.

Rates on 30-year mortgages hit a four-year high of 6.80 percent on July 20, but since that time have been trending downward as financial markets have become more convinced that a slowing economy and recent declines in energy costs will help keep inflation contained.

Such a slowdown would allow the Federal Reserve to keep interest rates on hold. Fed officials announced on Wednesday that they were leaving a key interest rate unchanged for the second straight month, raising expectations that the Fed’s two-year campaign to raise interest rates to fight inflation pressures may be coming to an end.

MSN article