I can't believe it's already time to check on interest rates! But, interesting thing... mortgage interest rates are dropping! Here are today's national averages according to MSN Money:
Today's National Averages
Mortgages APR
30-yr. fixed 6.04% <-----Wow!
15-yr. fixed 5.63%
1-yr. adj. 5.77%
As of my last posting on interest rates last week, these were the numbers:
Mortgages APR
30-yr. fixed 6.21% <-----What a change!!!!
15-yr. fixed 5.90%
1-yr. adj. 6.70%
November 5th, they looked like this:
30-yr. fixed 6.22%
15-yr. fixed 5.93%
1-yr. adj. 6.80%
(Note that the Fed had dropped the Fed Funds rate 1/4% on Oct 31st, so about a week before those numbers)
Going back in time to October 10th:
30-yr. fixed 6.39%
15-yr. fixed 6.08%
1-yr. adj. 6.85%
September 19th (the day the Fed announced the initial half-percent drop in the Fed Funds rate):
30-yr. fixed 6.20%
15-yr. fixed 5.97%
1-yr. adj. 7.36%
August 28th:
30-yr. fixed 6.36%
15-yr. fixed 6.12%
1-yr. adj. 7.25%
I will be interesting to see what happens when the Fed meets again on December 11th to decide the fate of the Federal Funds rate and the Discount Rate. Those rates, as I have said before, have an impact on mortgage rates, although not directly. The mortgage market bases rates not just on the Fed Funds rate, but also on market demands for mortgages. That's why mortgage rates were able to hold fairly steady while the Fed was dropping rates the last few months, and now we're suddenly seeing a drop independent of a meeting of the Fed.
I'm skeptical about the likelihood of the Fed cutting rates again this next meeting. They probably SHOULD do it, but they've been playing things fairly conservative.
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