+Fixed Mortgage Rates Drop – The drop in the rates for a fixed mortgage is welcomed by those considering purchasing a home or looking to refinance. Each time the rates go lower and lower means people can borrow money cheaper and cheaper. This is a great thing if you own or are looking to buy.
Everyone is hoping the drop in these rates will spur the real estate market in the right direction. With so many properties on the market needing to be purchased before we can see some normalcy again, this should be a step in the right direction, but no one can be certain. Lower interest rates don’t always create more activity in the marketplace.
+Fixed Mortgage Rates Drop
+Fixed Mortgage Rates Drop
The interest rates of a 30 year fixed rate mortgage went from 4.32% a week ago to 4.39%. These numbers are getting close to the record low of 4.17% in November of last year. At this rate, it seems like we may see a new low, but no one can be sure where the rates will go next.
You may think this was just in the 30 year mortgage, but that isn’t the case. The 15 year fixed mortgage rates dropped as well to the delight of well to do homeowners and buyers. They seem to be the only ones considering a 15 year mortgage.
The fixed mortgage rates for 15 years dropped from 3.54% to 3.50%. This pattern has been kept for the past couple of weeks, maybe even months, as the economy and real estate market has struggled along.
The 15 year mortgage is one my friend has been eyeing rather seriously over the past few months. I know he is glad he didn’t jump at the 3.9% 15 year mortgage he was considering a few weeks ago. Just by sitting still, he has decreased the cost of his money significantly.
Speaking with him yesterday, it seems all he is waiting for now is to find the right bank that will eat the $3,000 closing cost before he makes his move. We figured the market is so soft and activity is so slow, there is a a bank out there somewhere that will eat the closing cost basically giving away the loan. The competition for activity on the books is fierce between the banks, so there has to be someone willing to take the hit.
Nevertheless, the real estate market is sputtering along. Lowering interest rates may help it a bit, but seems like it might be like throwing a golf ball into Lake Michigan at this point, not going to make a lot of waves, but time will tell.
What do you think about the decrease in the fixed mortgage rates? Will they continue to trend lower or is this as cheap as it will get for the next few months? - +Fixed Mortgage Rates Drop
These are phenomenal rates, and I hope they are enough to boost property values. I wish we could take advantage of these low rates by refinancing at a lower rate. Unfortunately we are just too far upside down to make it feasible. Just gotta keep swimming for now.
Hunter, don’t feel bad. Many of us are in this situation. I know I am and I don’t even look at values. Not going to do that for another two or three years. I currently have a 4.3% rate, so I can’t cry at all about it. I had 4.3% five years ago through this program. That was when it was actually a low rate. LOL, that is the norm.
Just keep swimming, I suspect over the next four or five years we should see values to start to rise again. I do believe they are going to go sideways for a few years whenever they stop dropping. Unfortunately, I see them dropping for the next two years or so.
My current (15 year) mortgage is pretty low, but the decrease in rates is getting interested enough to inquire. I plan on calling today!
See if you are able to refi again with the bank picking up your closing cost. If you can pull that off, then it is definitely worth a refi. Might have to call around a bit, but at least worth a shot.
I refinanced last month. Doh! You never know what can happen.
I am sure you still got a great rate compared to the past, so it isn’t all that terrible….but ooooooooo, would have been nice to grab one of these rock bottom rates. That is for sure!
This is great news. I just inherited a house that I will need to sell. Anything that will help the real estate market is welcome!
Sorry to hear about your lost, I assume that is how you inherited the house. Have you considered rented the house out? In this market, it may sit longer than you anticipate, so it is nice to have an alternative option in place. In addition, if you rent it out and put it on the market, you may be able to sell to an investor who likes the idea of a home that already has a tenant in it……it all depends on the area and type of home.
Either way, good luck to you and the lower interest rates should help.