Interest Rates Drop 1/2% Down To 5.25% for 30 Year Fixed Loan!

What a great day for rates. We finally got what we have been looking for which is the government coming out and saying that they are supporting the mortgage market directly. They are doing this by putting out 600 billion dollars to purchase Fannie/Freddie/Ginnie Mae bonds. The impact was immediate. 30yr fixed conforming is at 5.25% 30yr fixed and FHA traditional 30yr fixed at 5.5%. This is a .5% drop from yesterday.