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Federal Reserve Announcement Drives Mortgage Rates to Drop

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RISMEDIA, March 25, 2009-Driven by the news that The Federal Reserve plans to spend an additional $750 billion to buy mortgage-backed securities, the weekly average rate borrowers were quoted on Zillow Mortgage Marketplace for 30-year mortgages fell to 5.06%, down from 5.21% the week prior, according to the Zillow Mortgage Rate Monitor, compiled by real estate website Zillow.com®. Meanwhile, rates for 15-year fixed mortgages dropped to 4.73%, down from 4.78% and 5-1 adjustable rate mortgages also fell, down to 4.69% from 4.71% the week prior.

Mortgage Type Average Rate Average Rate % Change
Week ending 3/22/09 Week ending 3/15/09
30-year fixed 5.06% 5.21% -2.9%
15-year fixed 4.73% 4.78% -1.0%
5-1 ARM 4.69% 4.71% -0.4%

Rates for 30-year fixed purchase mortgages had decreased slightly on Monday evening, with the average rate on Zillow Mortgage Marketplace at 5.03%.

Thirty-year fixed mortgage rates varied by state. Illinois mortgage rates, Michigan mortgage rates and Wisconsin mortgage rates decreased the most, dropping from 5.30% to 5.12% in Illinois, from 5.27% to 5.09% in Michigan and from 5.33% to 5.15% in Wisconsin. Georgia mortgage rates (4.92%), California mortgage rates (5.02%), Pennsylvania mortgage rates (5.02%) and Texas mortgage rates (5.02%) were the lowest in the country while Ohio mortgage rates (5 .20%) were the highest.

State Average 30-yr. Fixed Average 30-yr. Fixed % Change
Rate Rate
Week ending 3/22/09 Week ending 3/15/09
Arizona 5.06% 5.21% -2.9%
California 5.02% 5.18% -3.1%
Colorado 5.05% 5.22% -3.3%
Connecticut 5.06% 5.20% -2.7%
Florida 5.04% 5.21% -3.3%
Georgia 4.92% 5.05% -2.6%
Illinois 5.12% 5.30% -3.4%
Maryland 5.11% 5.25% -2.7%
Massachusetts 5.07% 5.23% -3.1%
Michigan 5.09% 5.27% -3.4%
New Jersey 5.05% 5.18% -2.5%
New York 5.11% 5.21% -1.9%
North Carolina 5.09% 5.23% -2.7%
Ohio 5.20% 5.38% -3.3%
Oregon 5.10% 5.23% -2.5%
Pennsylvania 5.02% 5.19% -3.3%
Texas 5.02% 5.13% -2.1%
Virginia 5.07% 5.22% -2.9%
Washington 5.06% 5.22% -3.1%
Wisconsin 5.15% 5.33% -3.4%

For more information, visit http://www.zillow.com/.

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Categories: Finance and Economy, Real Estate