Bond holdings adjustments has caused the recent fall in mortgage interest rates. Now, you can find mortgageoffers with 30-year fixed rate terms at 4.125 percent, at best, when last week, it leveled at 4.25 percent. The lowest since February 24, this has been marked the lowest on average before the talk of a Fed rate hike.
Today’s rates average are at 4.125 percent of the 30 year FRM, 3.75 percent to 4.00 percent for VA and FHA loans, 3.375 percent to 3.5 percent for the 15-year fixed rate mortgage, and 2.75 percent to 3.25 percent for the five-year adjustable-rate mortgages. Of course, these are only median numbers and rates can fluctuate by lender.
What is the forecast?
The continued fall is predicted to reach the lower bounds of the range for 2017, while any sharp jump higher “should” be interpreted as a sign that the range is not yet ripe for breaking.
The two important events set to happen within the week – the Fedmeeting and the jobs report expected Friday is set to determine the course for the rates in the next coming days or weeks.
Should I lock, or wait?
The trend towards lower mortgage interest rates have been going on for decades and experts are anxious that a permanent rate trend reversal might take place, although its conclusion is predicted to take years to conform.
However, getting back to rate levels post Brexit, for example, would require a significant market pressure to happen.
If you think the reports will impact the rates positively and pull it down, strategically floating can give you an advantage should your hopes prove true. Otherwise, locking in soon should be the way to go.