For the third straight week, we have seen an increase in the 30 year fixed rate but again in was a small one of only 5 basis points. It has been 7 weeks since we last saw three weekly increases in a row but certainly we are not seeing the volatility in the markets and rates seem to be “settling” in to a tighter trading range. As of this morning, the average overnight rate for a 30 year fixed rate sits at 4.89% up from the 4.84% we were at a week ago. Remember this is the average overnight rate and those with good credit will still be able to lock in rates below these averages.
The benchmark 15 year fixed rate also increased last week to 4.15% from 4.11% while the benchmark 5/1 adjustable rate mortgage moved slightly to the upside to 3.48% from 3.46% the previous week.
Recently, a “hot” stock market has many investors excited and we have seen some move investments out of bonds, which tend to be more conservative. If this trend continues we may see demand for bonds fall, which have a direct impact on interest rates, and yields rise meaning upward pressure on rates. So as the economy continues to improve we should see more demand for equities, less for bonds and a higher interest rate environment. Just another reason why today may be the best opportunity to lock up the right home that we may see for a very long time.
We take great pride here at “Results Driven Real Estate” in providing our clients the very highest level of service available in the industry. If we can be of assistance in any way with questions you may have about your real estate goals please feel free to contact me at your convenience for a complimentary consultation.
Always at Your Service,
Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty