mortgage rates decline
Recently, the Federal Reserve decided to keep interest rates at a record low point for now, and this week that was followed by a decline in long-term mortgage rates in the US.
Freddie Mac, a government sponsored mortgage giant, reported that rates on long-term mortgages fell last week from a week prior. Rates on 30-year mortgages fell to 3.86 percent from 3.91, and those on 15-year mortgages fell from 3.11 to 3.08 percent.
For 9 straight weeks, mortgage rates have stayed below 4% in the US.
After a summer of expectations that the Fed would raise interest rates across the country, they ended up deciding to keep the rates close to zero. This decision came because of concerns growing from a weak global economy, low inflation and unstable financial markets.
According to the Associated Press, Fed Chair Janet Yellen said a rate hike was still likely this year. The committee that sets the federal funds rate, which controls the interest rate between banks when they borrow from each other, will increase this year. This decision could be made at either of the Fed’s next two meetings in October and then December.
According to Florida Realtors, ,most industry experts (60%) polled by Bankrate.com this week predict little change in rates over the short term. Only 10% foresee an increase; the remaining 30% expect a mortgage rates decline.
A change in interest rates affects the real estate market because of a potential increase in home loans. The United States has not experienced rates higher than about zero since the financial crisis.
Right now has been a popular and lively time in the real estate market, especially because low interest rates make it less expensive to take out loans to finance your real estate purchase.
With so many great properties on the market right now in Miami, check them out and contact one of our agents today!