Interest Rates Stay Relatively Flat This Week
Interest rates increased last week for the third time in seven weeks and it was hardly a move at all. With the recent spike we have experienced many borrowers wonder if they may have missed their opportunity to snag the lowest rates in history. At this point I would not worry too much as they remain historically low and with continued volatility in the equity markets and world economies anything can happen.
As of this morning, the average overnight rate for a fixed 30 year mortgage as reported by Bankrate.com was at 4.18% up 1 basis point from where we stood one week ago. The benchmark 15 year fixed rate standard was at 3.47% unchanged from last weeks level while the benchmark 5/1 adjustable rate mortgage moved lower by 3 basis points to 3.03% from 3.06%. While nobody can say for sure that the lowest rates are behind us they did seem to bounce off the 4.0% support level so we will have to see what the future brings.
Many of my mortgage professionals have reported that refinancing activity has been very strong but calls for new loans have not been what anyone describes as robust. We still have every limited inventory in many housing categories in Palm Beach County which also is having a negative impact on sales. If the Feds’s interest in keeping rates low until more of the shadow inventory can be purchased by end users they might nudge the banks into releasing these properties a bit quicker as we need them to satisfy demand; especially homes in the $250,000 to $400,000 range.
“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