Interest rates drop for the second week in a row and remain firmly below 5%.
In what has become a rare treat, interest rates have dropped for a second consecutive week, which has only happened two other times over the previous six month period. As of this morning the average overnight rate, as reported by Bankrate.com, for a 30 year fixed rate sits at 4.87% down another 6 basis points from the 4.93% we were at one week ago today. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages. This week we have changed our chart to track interest rate changes going back 6 months so we hope you enjoy the new look.
The benchmark 15 year fixed rate also decreased last week to 4.16% from 4.23% while the benchmark 5/1 adjustable rate mortgage moved to the downside to 3.56% from 3.62% the previous week.
Some experts are pointing to the unrest in the Middle East has caused investors to seek more conservative investments which has put the downward pressure on rates. This can work in another direction as well as oil prices are adding to the cost of inflation which means higher interest rates. Interest rates are so important to the housing market we will continue to keep a close eye on the cost of money. 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