Interest rates decreased last week for the 2nd time in a row and brings us a new 5 week low for 30 year fixed mortgages. Rates still remain very low and the market remains perfect for buyers and those who still have not taken this historical opportunity to refinance. As of Sunday the average overnight rate, as reported by Bankrate.com, for a 30 year fixed rate sits at 4.78% down 7 basis points from the 4.85% we were at last week. 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 but to date the Fed has done an amazing job of keeping these rates at historical low levels.
The benchmark 15 year fixed rate also decreased by 6 basis points last week to 4.00% from 4.06% while the benchmark 5/1 adjustable rate mortgage also made a move to the downside to 3.32% from 3.44% the previous week.
Much of this weeks decrease can be tied to the improving job market where unemployment rates dropped in 34 states with 9 other states reporting no change. While news like this can help rates in the short term a when in practice a stronger job market reflects a stronger economy that could withstand higher rates. Of more concern is a warning by Standard & Poor’s about the potential of lowering the AAA rating of U.S. Treasuries.
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