Mortgage rates Trended down
Late last week after the release of weak economic data, including a higher unemployment rate and mortgage rates trended down! This is after last month saw a slight increase, according to Freddie Mac’s Primary Mortgage Market Survey.
Fortunately for current and prospective homeowners, interest rates continue to be very affordable. Through early March, mortgage rates for 2014 have remained in a “tight” range from 4.23% to 4.53%. Homeowners refinancing their properties are particularly pleased with the early March 15-year fixed rates of 3.32%.
The nasty US winter weather, with drought in the warmer West to seemingly consistent snowstorms in the rest of the country, may be helping to keep rates low despite the Federal Reserve’s “tapering” of their investment levels. Along with the cruel weather, economists downgraded Gross Domestic Product (GDP) projections to a 2.4% growth level in fourth quarter 2013.
Most economists still predict a return of slightly higher mortgage rates later in 2014, typically based on at least three factors.
- Disappearance of the harsh winter weather as Spring takes hold;
- A potential peaceful resolution to unrest in the Ukraine; and
- The expected inflationary “fallout” from the Fed’s multi-billion dollar monthly reduction in domestic investments, including mortgage-back securities
Mortgage lenders and home buyers continue to hope that rate increases resemble only “blips” more than “spikes.” As the typically active spring housing market approaches, no one wants mortgage rate increases to retard the rebounding home value upward movement and financing demand.
Current low fixed rates translate into lower mortgage payments, allowing more buyers and homeowners to qualify for financing. The housing market needs this rate environment to continue to enjoy the home values, sales and activity renaissance going forward. Check Today’s Rates on BOX Home Loans Home Page 24/7, no personal information required!