Mortgage interest rates dropped again today. The rate decline came after the Institute of Supply Management reported that manufacturing activity in April was weaker than expected. The news sparked a rally in the bond market, pushing yields on the 10-year Treasury below 4% for the first time since April 2004. As a result, mortgage rates for fixed rate mortgages dropped into the mid 5% range and rates on adjustable rate mortgages (ARMs) dropped into the high 4% range.
Consumers thinking about purchasing a new home or refinancing their existing mortgage have a unique opportunity right now to lock in a very low rate. None of the experts thought rates would be this low right now, and no one knows how long it will last. The best advice for people is to take action, rather than trying to time the market in the hopes that rates will drop even further.
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