March 27, 2009 2:00 am

Mortgage Rates: The Low Go Lower

If you're in the market to buy a home, a typical 30-day closing period might be doable. Blame the jaw-dropping low mortgage rates, now between 4.5% and 5.0%, that are tying up lenders and creating lines.

Already near record-low levels, the fixed rates for 30-year mortgages dropped last week when the Federal Reserve announced it would purchase an enormous amount of mortgage-backed securities.

The result, according to local lenders I've talked to, is lots of inquiries for refinancing. Homeowners who are refinancing are using the same resources (appraisers, underwriters, etc.) that buyers use to purchase homes.

Personally, I think a 30-day closing is still realistic with a strong, quality lender. If I'm buying a home or refinancing, I would make sure I'm in good hands in that aspect to best protect myself in any contract I'm entering.