Mortgage Rates Fall! Now What?
U.S. Long-term Mortgage Rates Fell Sharply...
Excerpts below come from an August 8, 2019 story published by the Associated Press in Washington.
The U.S. long-term mortgage rates fell sharply, with the benchmark 30-year loan touching its lowest level since November 2016.
Mortgage buyer Freddie Mac said Thursday the average rate on the 30-year mortgage dropped to 3.60% from 3.75% last week. A year ago the rate stood at 4.59%.
The average rate for 15-year, fixed-rate home loans tumbled to 3.05% from 3.20%.
Also last week, the Federal Reserve cut in its benchmark interest rate for the first time in a decade. The Fed made the quarter-point rate reduction with the aim of countering the impact of Trump’s trade wars, stubbornly low inflation and global economic weakness. The risk of a recession in the U.S. remains relatively low.
Fed Chairman Jerome Powell left open the possibility of future rate cuts, but perhaps not as many as Wall Street had been hoped for. The Fed’s rate cut unwound some of the credit tightening from last year, when rates were raised four times.
Freddie Mac surveys lenders across the country between Monday and Wednesday each week to compile its mortgage rate figures.
The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.
The average fee on 30-year fixed-rate mortgages was unchanged at 0.6 point.
The average fee for the 15-year mortgage also was steady, at 0.5 point.
The average rate for five-year adjustable-rate mortgages fell to 3.36% from 3.46%. The fee slipped to 0.3 point from 0.4 point.
What does this mean?
It means if you have thought about buying a home, selling a home or refinancing a home now is a good time to look at your options.
Combine the lower interest rate with the current San Angelo real estate market and there is something for everyone.
We currently have a high demand for homes but fewer homes for sale...GOOD for SELLERS!
Buyers (or those interested in Refinancing) are looking at extremely attractive interest rates...GOOD for BUYERS and REFINANCING!