March 28th, 2016
GREAT NEWS! Mortgage rates continue to impress
One deciding factor for many potential home buyers is the interest rate that they will be financing their home with. Good news is continuing to rain in for these people as mortgage rates continue to fall. Many people believed that the end of the record low streak was on the horizon when the Federal Reserve raised rates for the first time in a very long time. “This is evidence that the Federal Reserve isn’t the sole determinant of U.S. mortgage rates,” said Mark Hamrick, senior economic analyst at Bankrate, said in response to the non changing mortgage rates.
Although the Federal Reserve rates are not directly connected to mortgage rates, there can sometimes be a trickle down effect making it more expensive for banks to borrow money from the government. This can ultimately make it more expensive for the consumer. No fear though, the rates continue to drop This may be the reason why home sales continue to grow on a year-to-year basis as they are up 7.7% from a year ago. So if you are planning on making a move in the near future, DON’T WAIT. Now may be the time to put those plans into action.
A look at rates this week
- The benchmark 30-year fixed-rate mortgage fell to 3.78% from 3.88%, according to Bankrate’s Feb. 10 survey of large lenders. A year ago, it was 3.9%. Four weeks ago, the rate was 4.05%. The mortgages in this week’s survey had an average total of 0.20 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.01%. This week’s rate is 0.23 percentage points lower than the 52-week average. This is the lowest rate for the 30-year fixed since May 2013.
- The benchmark 15-year fixed-rate mortgage fell to 3.06% from 3.15%.
- The benchmark 30-year fixed-rate jumbo mortgage fell to 3.68% from 3.77%.
- The benchmark 5/1 adjustable-rate mortgage fell to 3.18% from 3.21%.
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