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Current Interest Rates
Current Interest Rates Are very Low
Despite the state of the world's economy, now may be a good time to consider buying a home. The benchmark 30-year fixed-rate mortgage as of December 2009 was at lows not seen in more than 30 years. Also, the Federal Government has extended its $8000 First Time Home Buyer tax credit to May 2010.
Mortgage rates are set by several factors. Many think incorrectly that current interest rates are affected when the Federal Reserve adjusts its Federal Funds rate and to a degree, it does though it's not the only factor. The Federal Funds Rate, simply put, is the rate at which banks can loan each other money and it does affect the market in general. Mortgage rates are affected by economic conditions such as strength of the dollar, inflation and the pace of economic growth. These conditions have an affect on the market. The banks and financial experts set rates based on these conditions making the rates fluctuate. Right now, current interest rates are at historic lows on the 30 year fixed rate mortgage at 4.71% and the fifteen year rate is lower still at 4.29%.
Another great incentive is the extension of the First Time Home Buyer tax credit under the Worker, Homeownership, and Business Assistance Act of 2009. In addition to the extension, the income limits were raised and current homeowners can get in on the action as well. Eligible current homeowners can receive up to a $6500 tax credit on the purchase of their next primary residence.
If there is a silver lining to be found in this world-wide recession, it's that efforts to ease the burden of buying a home in these market conditions are working, being extended and are paving the way for many to realize their dreams of home-ownership. | 
