Interest Rates Drop for 3rd Straight Week
The cost of money continues to surprise, amaze and astound. Just when the rate of a 30 year loan goes back above 4% and things look like rates under that level would never be back things reverse. And in a big way. Last week rates retreated for the 3rd week in a row and brings the cost of that 30 year loan down to a brand new, all time, historical record low.
As of this morning, the average overnight rate for a fixed 30-year mortgage as reported by Bankrate.com is at 3.82% down 4 basis points from where we stood one week ago today. The benchmark 15 year fixed rate is at 3.06% down 3 basis points from last weeks level while the benchmark 5/1 adjustable rate mortgage also decreased slightly to 2.71% from 2.73%.
For months there has been a call to action to get your long term money locked up while you still can. Then rates just hang out there with some minor movement always to retreat back to levels that can only be described as dirt cheap. One day we will all look back and say remember when you could get a fixed thirty year loan under 4% and wonder why we didn’t borrow more. One thing for sure is these rates will not be here forever and those able to use them to their advantage by buying a home they can stay in for 10 to 15 years or longer are making an incredibly wise decision.
These rates make homes more affordable than ever before and the biggest problem we have these days is finding homes for many of our clients who are still looking for great deals. It is very evident that the best pricing in many market segments are in the rear view mirror and buyers will need to pay a bit more for the same house moving forward. If they miss out on both the lowest pricing and lowest interest rates they may not be able to qualify for the same house that once was within easy reach.
We highly recommend not waiting any longer as we remain inventory challenged, prices are heading higher and the opportunity for a once in a lifetime deal are fewer and further between. Deals are still out there but if buyers are not well positioned to act quickly they will not be successful.
The best deals continue to go lighting fast……………