Interest rates down for the 3rd time in 4 weeks.
Interest rates dropped again last week for the 3rd time in 4 weeks and are now at the lowest we have seen since January 23rd. As of this morning the average overnight rate, as reported by Bankrate.com, for a 30 year fixed rate sits at 4.82% down 6 basis points from the 4.88% we were at last Sunday. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages. The overall sentiment is for rates to be increasing and these increases could be significant. No doubt the government wants to get out of the loan business and timing is the question but there is no doubt we could see rates increase tremendously from these historically low levels at some point in the not too distant future. Most concede there is only one way for rates to go from here and that is up, up, up. The big question is how fast and how high.
The benchmark 15 year fixed rate also decreased 7 basis points last week to 4.08% from 4.15% while the benchmark 5/1 adjustable rate mortgage made a more significant move to the downside to 3.48% from 3.62% the previous week.
The biggest question at this point is whether the Fed will continue it’s program of buying United States Treasuries to keep rates artificially low. If this program is curtailed it is going to mean immediate and significant interest increases. Still many European central banks are currently snapping up Treasuries so let’s hope demand keeps up. My advice to anybody contemplating a financed purchase of real estate to not wait too long as the cost of doing so may be shockingly high. In an upcoming update we will dig into the increased costs on FHA loans coming next month to borrowers everywhere.
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