According to the weekly Primary Mortgage Market Survey, those of you who took advantage of the low rates last week did so at the right time. This week, rates moved higher for the first time in three weeks.
Happy Halloween! While you’re likely to get frightened by all the ghosts and goblins running around today, mortgage rates this week will surely make you scream!
Mortgage rates have three options: rise, drop or remain the same. After a few weeks of inching upward/remaining unchanged, rates took a dive this week – not just any dive, either.
Economists predicted that a government default would cause interest rates to rise because it would hurt the creditworthiness of the United States and increase the treasury’s cost of borrowing money. Since the interest rates on consumer loans are tied to the treasury rate, a default would cause all interest rates to rise, including mortgages.
Mortgage rates can only drop so much before they begin to rise. Last week, fixed mortgage rates inched upward according to the Primary Mortgage Market Survey for the first time since the beginning of the month. That trend continued this week as rates again rose slightly.
While the weather can flip flop daily during the fall, mortgage rates can sometimes do the same. However, this wasn’t one of those weeks. In fact, there was barely even a change in mortgage rates.
The mortgage market is one area that potentially stands to lose heavily if the shutdown continues, but it’s been holding its own so far. Rates have actually dipped a bit because stocks have been so volatile that investors are looking to the safer MBS market.
It’s been a long time since rates have been this low. In fact, the last time 30-year fixed-rate mortgages were this low, the MLB season wasn’t even halfway over. To be exact, the last time 30-year fixed rates were this low was the week ending June 20, 2013.
The Fed holding off on tapering is doing wonders for the mortgage rate market! Read this week's Primary Mortgage Market Survey to see how far the rates have fallen in two weeks.
The Fed's announced they will not taper bond purchases yesterday, and mortgage rates fell quickly. The Primary Mortgage Market Survey shows how much they fell.