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Here we go again.  Baltimore mortgage rates on fixed mortgages dropped to record lows this week after the Federal Reserve unveiled its huge bond-buying program to help stimulate economic growth.

Freddie Mac says that the average rate on 30-year fixed loans fell to the lowest level on record dating back to 1971.

The average rate on 15-year fixed loans fell the lowest levels since the survey began in 1991.

The Federal Reserve unveiled plans last week to purchase $600 billion in Treasury bonds. On Wednesday, the central bank elaborated on that plan, saying that it hopes to buy $105 billion in Treasurys over the next month. The increased demand means that Treasurys will produce lower yields for investors. Mortgage rates often move along with those bond yields.

Rates on five-year ARMs hit their lowest levels since January 2005.  Rates on one-year ARMs were unchanged.

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Baltimore mortgage rates mostly fell this week, with short-term adjustable-rate mortgage again hitting record lows, although the average on 30-year, fixed-rate mortgages edged up for the third straight week, according to Freddie Mac‘s weekly survey.

The short-term rates Freddie tracks—for five-year and one-year Treasury-indexed hybrid adjustable-rate mortgages—hit the lowest levels since the mortgage financier began tracking them in January 2005 and January 1984, respectively.

Rates have been slumping for months, setting record lows in the process, as yields on Treasurys slid amid economic uncertainty. Mortgage rates generally track yields, which move inversely to Treasury prices.

The 30-year fixed-rate mortgage averaged 4.24 percent for the week ended Thursday, up from the prior week’s 4.23 percent average but down from 4.98 percent a year ago. The average for 15-year fixed was 3.63 percent, down from 3.66 percent and 4.40 percent, respectively.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.39 percent, down from the prior week’s 3.41 percent and 4.35 percent a year earlier. One-year Treasury-indexed ARMs were 3.26 percent, dropping from 3.3 percent last week and 4.47 percent a year ago.

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Baltimore mortgage rates stayed flat on Wednesday, following word from the Federal Reserve that officials will leave interest rates alone.

The Fed decided to leave its key interest rate near 0 percent on Tuesday afternoon and stated that interest rates should stay low for the foreseeable future.

Fed officials said that the weakened economy is going to result in “exceptionally low levels of the federal funds rate for an extended period.”

That policy has been in place since March of last year.

Current Baltimore mortgage rates are as follows:

30-Year Fixed: 5.000% with 0 points

15-Year Fixed: 4.375% with 0 points

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* Rates shown assume a minimum credit score of 740 and a LTV of less than 70%. Adjustments may apply to lower credit scores or to higher LTVs.

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