Mortgage Interest Rates hit historical lows !!!!
I am sure many have been hearing that mortgage interest rates are historically low in the last few days. It seems like in the last few years we have heard this and in many cases, it was just a marketing ploy to get the phones to ring. Well, as of this week, they have hit their lowest peak since interest rates have been tracked as far back as 1971.
So why are interest rates so low? Some investors on Wall Street fear a double dip recession approaching. And these investors will seek more stability in buying bonds, such as the MBS's, Mortgage Backed Securities. Just today, the consumer confidence index dropped from 62.7 in May to 52.9 in June. As many of us know, usually when the Stock Market drops (loses points), interest rates tend to get better, and vice verse. Another reason for the interest rates being much lower is because of the European market and the Chinese market growing slowly which affects the U.S. Markets.
Here some economic data reports that are due out this week : These reports could very well affect rates this week. I think the most important report would be the Jobs Report on Friday.
Monday, June 28: Personal Spending, Personal Consumption and Expenditures and Core PCE, Personal Income.
Tuesday, June 29: Consumer Confidence
Wednesday, June 30: ADP National Employment Report, Chicago PMI and Crude Inventories. LAST DAY FOR TRANSACTIONS TO CLOSE TO QUALIFY FOR THE HOME BUYER TAX CREDIT.
Thursday, July 1: Initial Jobless Claims, ISM Index and Pending Home Sales
Friday, July 2: The Jobs Report
Mortgage Interest Rate Outlook
Mortgage Interest Rates have gained some momentum yesterday and today, which is why we have seen the lowest interest rates in such a very long time. My fear is that I think they have edged themselves to the top per se, and have been holding strong, but that we are due for a slight correction. We have seen this take place several times in the last 6 to 12 months, just when interest rates seem to be going lower, they will creep up a few ticks or so.
Overall, I would float cautiously in the next 3 to 5 days, but for the long term, I would think rates still hold steady. Meaning that they will continue to be low in the next 30 days, but could be a tad higher than what we are experiencing now.
Word to the WISE :
Depending on your credit scores and LTV (loan-to-value), interest rates are any where from 4.25% to 4.75% for a 30 year fixed rate. If you see individuals and or mortgage companies offering mortgage interest rates at 4% or lower, there could be many points and or lender fees involved. What is being sold off on Wall Street right now are the 4.0% coupons. Just be careful in what someone might tell you or promise you.
Interest rates are low... don't play with the market and try and get 4% or lower. If you can, lock in now.
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Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc
_____________________________________________________________________________________________________________________________
FOLLOW ME ON FACEBOOK
- FHA Loans - USDA Loans - VA Loans -
- Energy Efficient Mortgages -
- Conventional Loans - 203 k loans -
- FHA Home Loans - Mortgages -
Experience & Knowledge at its BEST !!!
Follow me on:
______________________________________________________________________________________________________________
For more information on FHA loans, please go to this link. The FHA Expert
For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!
For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors
Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc
These rates are amazing !!!!!!!!!!!! I feel like going out and buying something !!!!!!!!!!!!
Jeff, this reminds me of when I bought my first place back in the early 1980's, and they locked me in at 18% just before they moved up to 19! The lender lady told me how lucky I was that she moved quickly on the lock.
Jeff
The low interest rate create a great opportunity to buy.
Good luck and success.
Lou Ludwig
Jeff - a correction, if I may: What's being sold off on Wall Street right now are the 4.0% coupons, not the 4.5s.
Form what I can tell, mortgage rates today are lower than what they were in 1953 (give or take a year or two or three) - the last time they were this low (and they were 20-year fixed rates then)! My advice is, if you apply today, don't try and play the market. Lock in your mortgage rate as fast as you can. Even if they go lower, it won't be by much, and you'll be better off getting the rate today than a higher mortgage rate tomorrow.
MICHAEL.... . lol... well, be careful on what you buy. How about 2 houses... ;o)
PATRICIA.... . you? you look so much younger. 'o) In any case, only 18%? lol Then again, houses were so much cheaper then. Couldn't imagine when rates went to 21%...
LOU.... . it certainly should help some...
LEW.... . I guess that's what I get for writing this post while yawning... and still yawning... lol Overall, I agree... don't play with the market, just lock in... so if they go another 1/8% to a 1/4%.... it would just be bragging rights then, right?
All winter all I kept hearing was interest rates are going to start creeping up by the end of March/April. Some reports were saying they would be 7% by now.
Great explanation for those who are wondering why this is the best market for buying a home since the 1950s. Thanks for the update and being a source for great info.
Great information Jeff. I especially like your warnings about the low interest teasers near the bottom.
The lowest rates since 1971! If people don't buy now they will never buy!