30-Year Mortgage Rates Fall a Full Point From October

The LA Times' Tom Petruno reports that 30-year mortgage rates are now at 5.47%, down from 6.46% at the end of October.

Here's why you care: The rest of his report notes that the government regulator which oversees the housing entities Fannie/Freddie thinks rates will go below 4%. You care because this is a sign of actual movement - and a positive sign - amidst much of the bad news in the business pages today. At some point the rate goes low enough that people start buying. What's that number? Tough to say, but dropping rates puts it closer.

You also care because as we've noted there is a split of view points between Treasury and the FDIC on how to help mortgage holders in default. FDIC wants the government to help them directly, while the Treasury wants to drive the lending rate lower to stimulate the market in the hopes that will revive housing prices and thus help those behind in mortgages by lifting their home values. You can bet this article will be cited by Treasury folks as progress - and thus the article will help you understand the forth coming stories regarding the Treasury/FDIC debate.