Cheap home mortgages continue to be readily available

Mortgage rates haven't changed dramatically since the big Federal Reserve rate cut over a month ago. This confirms my long-held view that mortgage rates a priced more due to supply and demand and the amount of liquidity in the pockets of investors than the actual Fed interest rate or even the 10-year Treasury Note yield.

Despite all the talk of a credit crunch, people with good credit and a documented income can still get reasonable size mortgages (under $417,000) at quite cheap rates. The latest weekly mortgage survey from Freddie Mac shows the average rate offered for 30-year fixed-rate home mortgage is 6.33% (down from 6.40% last week) and the average for the 15-year fixed-rate home mortgage is 5.99% (down from 6.08% last week.) These are truly great rates and are cheaper than the rates of a year ago.

Sure, people with lousy credit or without documented income or money for a deposit are on shaky ground, but that's the way it should be anyway. Jumbo mortgages for expensive homes (above $417,000) may be somewhat more problematic, but still available depending on local conditions.

So much for being able to depend on the media for information about finance and the economy.

-- Jack Krupansky