Interest Rates Down for the 9th Time in 11 Weeks
I continue to marvel at the Fed’s ability to keep rates this low but they came through again this week with a reversal and a nice drop. Rates remain at historically low levels and I cannot say this often or loud enough “If you are looking for a home, find one that you can stay happy in for at least 15 years, lock in these incredible rates and hold on for a long and happy ride because rates will be heading up!” As of today, the average overnight rate, as reported by Bankrate.com, for a 30 year fixed rate sits at 4.44% down 5 basis points from where we sat last week at 4.49%. While one never really knows what the future might bring the odds are very, very, very good that we will never see rates this low again, at least in my lifetime.
The benchmark 15 year fixed rate also decreased by 3 basis points last week to 3.62% from 3.65% while the benchmark 5/1 adjustable rate mortgage moved down to 2.98% from 3.04% just seven days ago.
There are plenty of signs that we will see a reversal in this trend with higher rates staring us right in the eye. QE2 is scheduled to end June 30th and that is the #1 way rates have been held in check. Not sure if there will be a QE3 as our politicians continue to argue about the growing debt and fiscal responsibility. If quantitative easing is done, cold turkey style, at the end of the month watch for potentially some drastic movements in interest rates.
“Results Driven Real Estate” is dedicated to providing our readers the most timely information and analysis of the metrics affecting the real estate market. It is this passion for our business and our customers that makes dealing with us different; we care not about closing the deal but ensuring we are helping each client make the right decision based on their individual circumstances. Again, if you are going to borrow money to purchase your home NOW is the time and I beg you not too wait too long. If we can be of help in any way just give Tom a call at 561 308-0175 or send an e-mail to firstname.lastname@example.org and we are most happy to serve you in any way that we can.
Always at Your Service,
Tom Priester e-PRO
“Results Driven Real Estate”
Keller Williams Realty