Rates are going down as is the amount of home buyers. Fewer people are buying despite the interest rates lowering. Rates on 15 year and 30 year fixed-rates lowered to encourage buyers, but it doesn’t seem to be too effective. One year adjustables have seen a change but not by much.

$200 billion will be given to Fannie Mae and Freddie Mac by the federal government. This is to help keep the lending corporations afloat by lending to new buyers. If there aren’t enough new buyers there’s not much the money will do for the corporations.

Rates on 15 year mortgages went from last week’s 5.78 percent to 5.63 percent. Thirty year fixed rate mortgages went from 5.94 percent a week ago to 6.10 percent. After a decline for two weeks of new applications that was a very slight increase. Applications were filled out as an attempt to purchase a new home but the owners have not finalized anything. Many that were in contracts took a loss and cancelled the sale since they feared the worst was still to come. Many potential home buyers do not want to be stuck in a home they cannot afford especially if their job is at risk.

One year adjustables went up slightly from 5.12 percent to 5.15 percent. Most adjustable loans will find their rates increasing since they rely mostly on the libor rates. The libor rate is combined with the index number which makes the total amount of the interest rate for any adjustable loan. The libor rates have not met up with the federal rate which is still causing problems among many homeowners and their ability to manage a monthly payment.