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Just How Low Can Interest Rates Fall?

By
Real Estate Broker/Owner with Paradise Sharks BK3087579


Rates Keep Dropping; 7 Straight Weeks Below 4%

Interest rates continue to move to new low ground and for the first time ever we start the week with the average overnight rate on a 30 year fixed mortgage below 3.9%. The Fed announced last week that they intended to keep rates at exceptionally low levels for a longer projected period now described as “out to late 2014”. With downward pressure continuing, borrowers waiting to close on a property need to carefully think if locking rates 30 days out is their best option.




As of this morning, the average overnight rate for a fixed 30-year mortgage as reported by Bankrate.com is at 3.89% down 3 basis points from where we stood seven days ago. This marked the 10th week out of the past 13 where rates have either dropped or stayed flat and yet another brand new all time record low. The benchmark 15 year fixed rate standard was at 3.22% down 4 basis points from last weeks level while the benchmark 5/1 adjustable rate mortgage dropped 1 basis point to 2.88% from 2.88% where they stood 7 days ago. The fact that rates have held below 4% now for 7 weeks tells me we could go lower which is really amazing. Unfortunately the reason for these drops is teh continued outlook to anemic growth in the overall economy.

 

You will find it very easy to reach me at 561 308-0175 or via e-mail at tom@tompriester.com if there is anything that I can do to assist you with real estate questions that you may have. We are committed to bringing only the highest level of service to you, your family, friends and colleagues so if we can be of service in any way please do not hesitate to contact us at your convenience.

 

Cheers,


Tom Priester   e-PRO
"Results Driven Real Estate"

Keller Williams Realty

561 308-0175

tom@tompriester.com

Comments (2)

Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Keller Williams Land Luxury Division Specialist

You have to love the continual lower rates and rising sales and rising prices. 

Add to lower unemployment figures and it adds up to maybe just maybe Obama might be doing a good job...

Look forward to seeing you in Orlando in 2 weeks Tom.

Jan 30, 2012 03:12 PM
Tom Priester
Paradise Sharks - Jupiter, FL
Paradise Sharks

Kevin,

Obama certainly isn't doing a good job, far from it. However he is not any more of a problem than Bush was, or Clinton, or Bush Sr. or Reagan. The fact is ever since Ronald Reagan took office in 1981 each and ever administration has spent us into oblivion and we as American's have been taken on a wild ride by big government politicians who are not doing anything but ruining what was once a great nation and lining their own pockets along with those of their cronies. I was truly hoping that more people would have jumped on the Ron Paul bandwagon as he is the only one who wants what is good for America; term limits, balanced budget and a stop to the spending that started with Reagan. At some point we will default and who knows how a restructured America looks but we will be seeing at some point. It certainly isn't Mayberry any more and that in many ways is really too bad.

Feb 05, 2012 09:08 AM