There are a lot of different economic factors that are responsible for this amazing mortgage interest rate environment. We can't expect these mortgage rates to last for ever. See one economists brief explanation below...
"Rates fell to historic lows for the sixth time in seven weeks. Freddie Mac announced that for the week ending August 5, 30-year fixed rates averaged 4.49%, down from 4.54% the previous week. The average for 15-year fixed fell to 3.95%. Adjustables were also down with the average for one-year adjustables falling to 3.55% and five-year adjustables decreasing to 3.63%. A year ago 30-year fixed rates were at 5.22%. Stated Frank Nothaft, vice president and chief economist, "And yet again, rates for fixed-rate loans and now the hybrid 5-year ARM fell to all-time record lows this week following the second quarter GDP release. Annual revisions cut the cumulative GDP growth in half over the past three years ending in the first quarter of 2010 from 1.4 percent to 0.6 percent. This reduces inflationary pressures and allows longer-term rates room to ease. More recently, housing investment picked up in the second quarter of this year as the home buyer tax credit spurred new and existing sales and low rates encouraged remodeling. Fixed residential investment added 0.6 percentage points to second quarter real GDP growth following two quarters of decline." Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes."
I will continue to post about the different factors that affect mortgage rates and how quickly they can change. It's important for real estate professionals especially because swings in the interest rate market can be somewhat predicted when you know what causes them.
If you or one of your clients are thinking of buying a home in the Phoenix, AZ market, how could there be a better time than this? Call or email me today to talk about taking advantage of this perfect storm of decreased values and low interest rates! CMG offers Fannie Mae Direct IN HOUSE Underwriting along with access to every major bank in the country. Our underwriters are fast and actually use common sense.
Michael Freeman
CMG Mortgage, Inc.
Licensed Loan Originator - NMLS # 237263
"The perceptions, opinions, beliefs and attitudes expressed are those of Michael Freeman alone and are not necessarily aligned with the policies, standards, and practices of CMG Mortgage, it's partners, vendors, or customers. Michael Freeman is speaking solely for himself and not on behalf of CMG Mortgage."
Comments(0)