Santa Claus brought everyone a present this week when it came to interest rates.
After seeing the Bankrate average overnight rate for a 30 year fixed mortgage climbing for 6 weeks in a row with mid week highs up to 5.19% we finally get a break. For the first time in almost two months we have seen a reversal in the recent surge with rates dipping back below the 5% barrier. As of this morning, the average overnight rate for a 30 year fixed rate sits at 4.97% down a full 10 basis points from where we were a week ago at 5.07%. Remember this is the average overnight rate and I know there are better rates out there for those with good credit history.
The benchmark 15 year fixed rate also decreased significantly last week to 4.29% from 4.45% while the benchmark 5/1 adjustable rate mortgage bucked the trend and moved to the upside to 3.84% from 3.8% the previous week.
More and more economic news appears to show continued recovery which brings fears of higher inflation which tends to push rates higher as the increased cost of borrowing should slow growth. This week, the markets pulled back maybe showing that the recovery is not as robust as bond traders had been hoping for. One thing is for certain; home buyers will keep their eyes wide open and will be watching for an opportune time to lock in their rates as there is much volatility in the market.
A professional real estate agent watches these market trends very closely as the data is very important to our clients, whether they are buying or selling, to paint a picture of where the market may be heading. If you would like any additional information on a specific home, neighborhood, or community please feel free to contact me. I am easily reached at 561 308-0175 or via e-mail at tom@tompriester.com and would be happy to be of assistance. After just one call you will know why “Results Driven Real Estate” is your top choice for professional real estate services in Palm Beach and Martin Counties.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty
561 308-0175
Comments(6)