Mortgage Rates – “The average rate on the popular 30-year fixed loan is now at its lowest level of the year and could potentially head lower into new record territory.”
Home Loan Rates: How Low Is Low?
A Video Report
When the Fed raised interest rates at the end of last year, most everyone in the industry believed that would bring on a rise in mortgage rates. Well, that shows how much the “folks in the know” … know. The big real estate news of 2016 (so far) is that exactly the opposite has happened … and continues to happen.
Here’s a video report from Diana Olick of CNBC about current home loan rates, and what we might see in the near future.
Lower Mortgage Rates Still Ahead?
A few weeks ago in these pages, we pointed out the fact that home loan rates tend to follow the action of the 10-Year US Treasury bond prices. We stated then that the bond prices were indicating lower mortgage rates still to come … and that is exactly what we’ve seen during the ensuing days. At this point, the relationship between the two prices is still the same: the bonds are still trading downwards and there is no reason to suspect anything other than that Mortgage Home Loan Rates will continue to follow them for the short term.
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A potpourri of political and economic factors are behind the fall in mortgage rates, which follow loosely the yield on the U.S. 10-year Treasury. Both the Fed and the European Central Bank expressed concern this month about the trajectory of the global economy. Consumers and investors are on edge because of three factors: Oil prices can’t seem to make a decided move higher; some analysts are concerned about a stock correction; and the race for the White House has been highly volatile.