Mortgage rates nationwide are falling post-highs from economic troubles that are now turning around.
The average rate for 30-year mortgages in the US fell to 4.04% this week. Last week, the rate was 4.08%. The rate on 15-year mortgages fell from 3.24 percent to 3.20 percent in the past week as well. These drops are coming off of high levels from the year due to such economic turbulence occurring overseas in China and Greece. The new low levels are encouraging people to purchase homes, and caused many home purchases to occur this spring. Low mortgage rates can account for a booming real estate market that has been one of the best and strongest since 2006.
Recently, China’s stock market has been slipping and Greece’s economy is also in serious crises and searching for help from other European countries. Due to these problems across the pond, investors instead are finding security in US Treasure Bonds, pushing interest rates down. Bond yields are also dropping due to an increase in bond price.
Half of the industry experts polled this week by Bankrate.com think rates will continue to move lower over the short term, with only 8% predicting an increase and 4% predicting no change at all.
With rates that seem to be continuously falling make now and the near future financially inexpensive and smart times to purchase a new home in the Miami area. These rates are expected to hit a low and rise again, so there is no time like the present to contact a RE/MAX Paradise agent for all of your real estate needs in the Miami area!