By Brett Ellis
Mortgage rates hit new lows for the year this past week as 30 year fixed rates averaged 3.97% The 15 year rate fell to 3.18%, and the 5-1 ARM sits at 2.92%
Mortgage Rates Hit New Lows
Forecasters have been prognosticating mortgage rates would begin to rise going into 2015 as the Fed tapers its bond buying program and most believe this is true. However, we’ve heard fears of deflation and 10 year bond yields have fallen below 2%. This is due to several factors including an economic slowdown in China, Europe, as well as fears of Ebola. Ebola is one of those wildcards we’re thrown every once in awhile that makes it difficult to predict what will happen to the world economy.
Buyers are taking advantage of the dip in rates too as we listed and sold several homes this past week that sold in a day. Buyers who have been shopping for any length of time are tired of getting beat out by other buyers for hot new properties that enter the market.
They’re also watching the interest rate market as a dip in rates means they can afford a larger mortgage with the same monthly payment …read more
Source:: Top Agent