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Mon January 5, 2009
Mortgage rates drop, give hope to bankers
By Peter O'Dowd
Laramie, Wyo. – Plummeting mortgage rates have caused a spike in business for some banks in Wyoming.
According to a weekly survey by Freddie Mac, rates have fallen more than 1-point-3 percent on a 30-year-fixed mortgage since October. Cheyenne State Bank President Dave Cook says the lower rates of 5.1 percent have made purchasing a home or refinancing more attractive.
"It's just starting, we've seen more of it. I'm encouraged we'll see more. It will probably take a month or two for people to get that confidence, but the lower rates do help."
But Cook says consumer confidence is still stunted by the country's lingering economic crisis. He says people are still unwilling to buy a home if there is uncertainty about where the economy is headed. The mortgage rates are the lowest since the Freddie Mac survey began in 1971.