The global economy is a cause for concern about the 30 year mortgage rates this week. The Federal Reserve’s hike of interest rates in December has also caused many to keep a close eye on mortgage rates because of potential effects from the Fed. That was the first time the Fed had raised rates since 2006. However, they actually remained unchanged. They do remain at historically low levels. Interest rates are still low, too.
According to the Associated Press, “mortgage buyer Freddie Mac says the average rate on a 30-year, fixed-rate mortgage remained at 3.65 percent this week after dropping for six straight weeks. The average rate on 15-year fixed-rate mortgages was also unchanged from last week at 2.95 percent after falling for five consecutive weeks.”
How has the global economy affected 30 year mortgage rates this week?
“Worries about the global economy have coaxed investors into seeking the security of U.S. Treasury’s. Their purchases have pushed down the yield on the benchmark 10-year Treasury note, which influences long-term mortgage rates, to 1.81 percent from 2.27 percent before the Fed hiked rates Dec. 16,” the Associated Press also wrote.
The volatility of financial markets globally has caused the 30-year mortgage rates to remain so low this week.
“After another week of financial market oscillations driven by rumors of potential limits on oil production, the 10-year Treasury yield edged up 5 basis points, and the 30-year mortgage rate remained unchanged at 3.65 percent,” said Sean Becketti, chief economist for Freddie Mac.
Low mortgage rates like this will not last forever. If you are planning to refinance or buy a new home, take advantage of them as soon as possible. Jonathan Smoke, chief economist at realtor.com, encourages checking out the rates in your area. He also recommends contacting a broker (like one of our experts at RE/MAX Paradise) with any questions.