Mortgage Rates Fall to 10-Month Low
Mortgage rates haven’t been this low since January 25 of this year, when the average rate was at the current low on a 30-year fixed rate of 6.24 percent. With the fears that possible inflation pressures easing and news that the Federal Reserve is downplaying any likelihood of interest rate hikes in the near term, this has helped push mortgage rates down.
The latest reading on the Producer Price Index (PPI) showed a decline in prices, an antidote to the inflation concerns of the Fed. In addition, remarks by several Fed governors in recent days were notably softer than the anti-inflation rhetoric that had prevailed of late. With worries about any additional interest rate hikes put on the back-burner, investors purchased government and mortgage-backed bonds. This pushed bond prices higher and bond yields lower. Mortgage rates are closely related to the yields on long-term government and mortgage-backed bonds.
Fixed mortgage rates are sharply lower than five months ago, when rates were flirting with 7 percent. At that time, the average 30-year fixed mortgage rate peaked at 6.93 percent, meaning that the monthly payment on a loan of $165,000 was $1,090. With the average 30-year fixed rate now 6.24 percent, the same loan originated today would carry a monthly payment of $1,014.86. Fixed mortgage rates are a compelling refinancing alternative for adjustable rate borrowers facing sharp payment adjustments. Via rismedia.
Iv’e been saying for a long time that this actually might be one of the best buying times over the next couple of years. Especially in my market here in the Bellingham, WA and Whatcom County area, with all the recent good ecomnomic news. Recent articles in the Bellingham Herald, Seattle Times and elswhere has shown the job market has been on a rise, retail sales are at an all time high, Interest rates are coming down, Inventory of homes are up and the home prices are soft. We could very well be at a bottom or close to a bottom in the housing market locally. As a buyer in any market, you need to know when to reconize these trends and put some trust in an experienced real estate agent.