Just last month, rapidly rising interest rates caused great concern among homebuyers that the days of record-low interest rates are over.
However, recent political turmoil combined causing economic uncertainty in the markets and, in a trend that many did not predict last month, mortgage rates have been declining.
Mortgage rates fell for the third week in a row last week, with the 30-year fixed mortgage rate falling to 4.47%, according to a weekly survey by Bankrate.com. Meanwhile, the average 15-year mortgage rate plunged to 4.64% and adjustable rate mortgages also dropped to 3.41%, with the 7-year ARM rate being about 3.77%.
But homeowners have seen that interest rate trends are not set in stone and the quickly rising interest rates in the past couple months proves that even today’s low rates are likely not to last.
Buyers should treat the recent drops in interest rates for what they are – a break from the increasing trends and an opportunity to secure lower rates on a property they’d like to buy. While mortgage rates do have room to fall further, the recent trends toward declines is just not likely to last.
In the past year, the majority of economic indicators have been positive – from home sales reports to jobless claims. That means that the economy is in general likely on a positive course and interest rates are poised to rise in tandem with this recovery.
While the Federal Reserve did put off tapering its stimulus bond-buying program in September, it must wind down that program sometime. And when it does, rates are likely to rise. That could happen as soon as this month.
For More Information:
Rock Creek Realty: http://www.rcrdc.com/
Fannie Mae: http://www.fanniemae.com/portal/index.html