Rates drop about 5% to another all-time record low
Rates have been historically low for so long I am afraid buyers do not understand how lucky they are. Home prices remain low but we may start to see increased pricing pressure as inventory levels continue to shrink. But interest rates are you kidding me; thirty year fixed average overnight rate at 4.00000%. As the equity markets had a huge down week interest rates were the beneficiary as investors flock to the “security” of US Treasuries. But those of you who do the grocery shopping know that inflation is here; I saw a 16 oz bag of nuts at Target this week for about $14! Inflation fears will raise rates at some point no matter how long the Fed would like to keep them here.
As of today the average overnight rate for a fixed 30 year mortgage as reported by Bankrate.com is at 4.00% down an amazing 18 basis points from where we stood one week ago today. The benchmark 15 year fixed rate standard sits at 3.3% down 5 basis points from last weeks level of 3.38% while the benchmark 5/1 adjustable rate mortgage decreased 7 basis points to 2.93% from 3.00%. Volatility is in the air again this week and it will be very interesting to see how the markets react to the latest economic news.
When I purchased my first home interest rates where at an equally amazing 18%; principal and interest on a $100,000 loan ran $1,507.09. Borrow that same amount today at 4% and your principal and interest payment would be $477.42. I keep telling buyers to find a house they will be happy in for at least 10 to 15 years,borrow as much money as you qualify for and sit back and chill. Soon you will be looking in the rear view mirror and saying thank you , thank you, thank you.
“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