Largest One Week Drop in Rates in 10 Months
In a stunning drop, amidst news that America had lost their AAA bond rating interest rates last week took a monumental fall and are ever so close to reaching their lowest levels. As the world markets continue to be in turmoil, investors are flocking to United States Treasuries which has led to the huge drop. Watch these numbers closely as one would logically think that this downgrading of our debt would mean a significant increase in rates. There are historical numbers; like Japan in the early 1990’s where a downgrade actually lowered rates so it is certainly going to be a very interesting ride in the coming weeks.
This week the average overnight rate for a fixed 30 year mortgage as reported by Bankrate.com fell to 4.31% down an amazing 20 basis points from the 4.51% we stood a week ago. The benchmark 15 year fixed rate also decreased by 16 basis points last week to 3.48% from 3.64% while the benchmark 5/1 adjustable rate mortgage dropped 12 basis points to 2.86% from 2.98% just seven days ago. Volatility is in the air again this week and it will be very interesting to see how the markets react with the debt downgrade grabbing the headlines.
It is time for America, and both our Republican and Democratic representatives to make a drastic change in our spending patterns and it appears the chickens have finally come home to roost. Or at least that is what we thought. Instead our elected officials argued like school children, did nothing and decided the easiest thing to do was to ignore the problem, agree to more wild spending and move any consequences a little further out into the future. Hopefully these elected officials will soon see the need to seriously address the issue which will take a combination of both drastic cost cutting and an increase of revenue. It really is unbelievable and frustrating to watch and i keep hoping for a candidate with a strong business background to emerge for next years presidential election.
“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 email@example.com 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