By E. Scott Reckard | Los Angeles Times
Homebuyers fearing a rapid rise in interest rates got a reprieve this week as rates dipped sharply, hitting their lowest level in two months.
The decline owes primarily to last week’s announcement that the Federal Reserve would continue its massive economic stimulus program. Although economists still believe rates will climb over the next year, buyers may now enjoy some breathing room in the wake of sharp home price increases.
The weekly rate report from home finance giant Freddie Mac comes on the heels of recent data showing housing markets in Southern California and nationally have cooled some after months of sharp increases.
Related: Banks cut more than 1,300 mortgage jobs as demand dwindles
