Average Mortgage rates down this week to the lowest point since May to 3.84%. The past week saw a lot going on in the economy, from global market turmoil to economic developments in China.
According to the Associated Press, the huge mortgage company Freddie Mac said on Thursday that the average mortgage rates on a 30-year fixed-rate mortgage fell to 3.84 percent from 3.93 percent a week earlier. The benchmark rate had not been this low since May 21. To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates.
The rate on 15-year mortgages also declined this week. This rate dropped from 3.15 percent to 3.06 percent from last week.
The stock market was very tumultuous in the past week. Many stockholders sold their stocks out of sheer panic, and the AP says investors were sent “to the safety of U.S. government bonds, raising their prices and dampening their rates.”
The AP also reported, “Mortgage rates often track the yield on the 10-year Treasury bond, which dipped below 2 percent on Monday, a day of epic losses and price swings on Wall Street. The yield recovered to 2.18 percent Wednesday. That compared with 2.22 percent last Wednesday.”
The economic jitters and downfall of the stock market also cause people all over the US to question the much and long anticipated increase in interest rates by the Federal Reserve. It had been expected that these rates would raise next month.
The real estate market is still strong thanks to more employment and a stronger economy. The National Association of Realtors showed that slightly more Americans signed contracts to buy homes in July, as pending sales also rose, according to a report released Thursday.
Average Mortgage Rates Down
With average mortgage rates down, and the Miami real estate market doing so well, come meet us at RE/MAX Paradise and we can help you find the perfect new home for you.