If you're in the market to buy a home or refinance the one you already own, now may be the time.
Thirty year fixed rate mortgages have dropped again to around five and two-thirds percent. This is the fourth time this year that rates have dropped to the lowest levels on record.
Bob Coffin of A.G. Edwards says interest rates are falling to help spur the economy.
"So the Fed has been trying to stimulate the economy and make it grow by lowering interest rates," said Coffin. "It never really had the effect they hoped it would so they're continuing to lower the interest rates until we're where we are today."
Eunice Dillard is the mortgage loan officer at Community Bank in Meridian. She says it's a good time to buy a home or refinance
because it can help n the long run.
"You can refinance in two ways that will help by lowering the interest rate. Taxwise, it will help you because you can deduct that from the taxe," said Dillard. "Also, with a refinance, you might say my home is paid for. But if you paid taxes last year, that would help."
Interest rates are as low now as they've ever been, mainly due to the soft economy. But there is a lower limit, and rates could begin to rise again soon. That means now is the time to make that big purchase.
"Fifteen year fixed rates are around 4.75 percent and 30 year mortgages are about 5.5 percent or a little lower," said Dillard.
Dillard added that, even if you're not planning on staying in one place for a long time, with interest rates this low, there are shorter-term alternatives that can still save you money in the long run.