Unbelievable Mortgage Rates Will Only Get Better

By Tom Johnson

Dec 3, 2008 11:06am

Mortgage rates are dropping.  And dropping fast.  30 year fixed rates stand at about 5.5% today.  And according to one influential bond big shot, hang on it’s only going to get better.  Bill Gross, founder of Pimco, says that 30 year fixed mortgages will go down to 4.5% in the coming days.  Speaking on CNBC today he said, "don’t refinance yet".  The reason for such a low rate:  "…that’s basically what the government needs. They need a 4 1/2 percent to 5 percent 30-year rate in order to support home prices and, yes, to encourage refinancing and the process of reliquification within the economy."

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