Good Morning,
It has been a bad couple of days for Mortgage Backed Securities and this trend is continuing to drive rates higher. Still, with interest rates hovering on the bubble of 5%, there is no reason to complain, rates this low are still great to have around considering that at one point in 2007, predictions were for interest rates to rise back above 6%...so we are still in a much better position that anyone really anticipated at we move into 2011.
A lot of the current market movement was in response to the tax cut proposal that the President announced yesterday. Many investors see this as a clear direction that the government is taking in the economy and they are moving their investments around accordingly. Now, if the tax cuts end up not getting passed, we could see a reversal and rates drop back lower but in most circles, the consensus is that that the lowest rates are most likely behind us and they were a great help to many as they lasted.
As the direction keeps moving downwards today, we could see rates rise again before the end of business today until things settle.
Either way, 5% is not a bad interest rate by any means. Home owners and prospective homebuyers should still take advantage of these extremely low rates while they hang around.
Thanks
Matt
Rates: 30 year fixed at 4.875% and the 15 year at 4.25%, FHA: 4.75%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be seeing
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
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