Fed Rate Kept Near Zero – Low Rates Available Online
Apr 30th, 2010 @ 10:21 AM by Amber Nelson
Yesterday, the Federal Reserve Board (the Fed) announced that it would keep its key interest rate near zero despite its optimistic outlook on the labor market and the economy overall. Informa Research Services, a subsidiary of Informa plc (LSE: INF), suggests consumers use online rate tables and national averages to monitor rates while awaiting the Fed’s next move.
Many speculated the Fed would indicate a rate increase in the coming months in their statement today. Instead, they maintained that “economic conditions… warrant exceptionally low levels of the federal funds rate for an extended period” (Source: www.federalreserve.gov).
Since it is nearly impossible to guess where rates are headed, consumers should use reliable online resources such as Loan.com to find the best rates. By monitoring rates regularly, consumers can familiarize themselves with current rates, and by doing so, they will be able to more easily distinguish between a truly attractive rate and flashy marketing.
There are a number of low rates currently available, which is no surprise considering the low current national average. The national average rate on a 30 year fixed mortgage currently stands at a modest 5.25%, according to Informa Research Services’ Interest Rate Review. And as any attentive rate shopper can tell you, since this figure is an average, there are frequently lenders, such as QuickenLoans.com, who can offer loans well below this. By using online rate comparison tables, consumers can compare rates, fees, and monthly payment on loans offered by different lenders in their area to ensure they are getting the best possible deal.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.