Market Update.: 30 year fixed rates below 5%.
Multiple news agencies are reporting today that the average rate on a 30 year fixed mortgage has dropped below 5%. The average rate based off of last weeks locks/closings is 4.93%.
On the application side of things, applications actually dipped by 2.1% last week. I think this may have been caused by news of increasing rates, widely reported on February 4th, and this news may have cooled some interest in homeowners replacing an existing mortgage.
With rates seeing some temporary downward pressure, application numbers this week and next week may show an increase.
Once it set's in with everyone that the Fed will stop pumping money into the mortgage market as the 1.3 trillion they've dumped in already runs out in 6 weeks, there might quite possibly be a huge spike in applications while everyone looks to grab the low rate before the jump up to what some analysts suggest will be rates at 6%.
If you are in Rhode Island or Massachusetts, I can be reached directly at 401-437-2008 to have a conversation about your current loan and if it would save you some money to replace it.