After rising for 4 straight weeks we saw a nice reversal in the interest rate market last week, dropping rates back below 5%. As of this morning the average overnight rate for a 30 year fixed rate sits at 4.93% down 13 basis points from the 5.06% we were at a week ago. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages.
The benchmark 15 year fixed rate also decreased last week to 4.23% from 4.32% while the benchmark 5/1 adjustable rate mortgage moved to the downside to 3.62% from 3.63% the previous week.
The future of Fannie Mae and Freddie Mac and proposal’s to limit their future involvement in the residential mortgage market helped move rates lower last week. However, time lines for any massive changes are out nearly a decade so should have no significant impact on today’s real estate market. Also providing downward pressure on rates was a solid report that retailers posted a .3% gain in sales during January. All signs point to rates staying in the 5%+/- area for the immediate future but bear watching as we have seen over the past 3 months just how quickly things can change.
We take great pride here at “Results Driven Real Estate” in providing our clients the very highest level of service available in the industry. If we can be of assistance in any way with questions you may have about your real estate goals please feel free to contact me at your convenience for a complimentary consultation.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty