The central bank on Tuesday said it had reduced the federal funds rate, the interest that banks charge each other, to a range of zero to 0.25 percent. That is down from the 1 percent target rate in effect since the last meeting in October. Many analysts had expected the Fed to make a smaller cut to 0.5 percent!

This is great news for anyone wanting an Idaho refinance loan (or any kind of Idaho home loan, for that matter), because Idaho mortgage rates are the lowest they've been in a long time. Don't expect them to get to these levels for a long time.

Mortage rates are at unprecedented lows

Take a look at this chart of 30 Year Fixed mortgage rates:

The Fed's action and statement made clear that economic conditions have worsened since its last meeting in October 2008.

How does this help you save on your Idaho mortgage, probably your largest monthly payment?

Mortgage rates hit rock-bottom this week following a key cut in the federal funds target, as the average 30-year fixed-rate mortgage sat at 5.19 percent — the lowest rate ever recorded by Freddie Mac, who began tracking rates in 1971. That’s down from last week’s 5.47 percent average, and far below the average of 6.14 percent recorded last year at this time, according to Freddie Mac’s weekly survey published Thursday.

“Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “The decline was supported by the Federal Reserve announcement on December 16th, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant.”

Compare Idaho Lenders.com weekly mortgage rate survey also reported Idaho Mortgage rates hovering around 5.42% for a 30-year fixed-rate. The average 15-year fixed-rate mortgage fell to 5.3 percent!

So if you want to lock in your lowest monthly payment ever, now is the time to act before these rates disappear forever.

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It seems that Idaho's unemployment rate continues to be lower than the national average. According to a recent Idaho Business Review article, foreclosures have been kept relatively low due to our lower unemployment rate. In fact, we still rank all the way down the list at #41 out of the 50 states for foreclosures.

As a result, Idaho still has some of the best rates in the nation when it comes to home loans, debt consolidation loans, refinance loans, and home equity loans.

Get the best rates in Idaho today...right here, right now!

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