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.
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Tom Priester e-PRO
"Results Driven Real Estate"
Keller Williams Realty