Loan rates for residential mortgages are down again as the economy continues to put pressure on the downward trend for fixed loan rates. The questions I am hearing from my clients is should I refinance or should we wait to buy. The answer I am telling people is rates should remain flat and continue on the downward trend pending of course good economic news (something we haven't seen in a while nor will in my opinion). If however, the stock market continues to get slammed then perhaps investors will be shifting their money to bonds and we can see a weakening of these historically low interest rates.
Waiting to refinance is probably a safer bet, but waiting to purchase in order to capture an 1/8-1/4 points on a loan is possible if you're not in any hurry but look at where the rates are right now! Really really low. If you're out looking at properties and see a glut of properties fitting your wish list then waiting is a consideration, however, if the area you are looking does not have a large selection I would say continue the search and when the property comes along that looks good, put in an offer and secure those low rates now. I don't think we will see the rates going below 5.0% unless the recession which is looming becomes a certainty.
Long-term mortgage interest rates continued lower Friday, and the benchmark 10-year Treasury bond yield held steady at 3.59 percent. The 30-year fixed-rate average dipped to 5.47 percent, and the 15-year fixed rate slipped to 4.95 percent. The 1-year adjustable rate sank to 5.1 percent. The 30-year Treasury bond yield was down at 4.31 percent
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