Mortgage rates continue to remain historically low. Because of the pandemic, the Federal Reserve has stated that it will keep rates near zero for the foreseeable future. And there are many other factors that are impacting mortgage rates as well. If you are looking to buy a new home, you may never see rates as low as they are again.
The article below from Money gives a great snapshot of the current state of rates. Enjoy the article and give me a call with any questions you have or if you want help with your real estate needs.
Tim Houterloot - Broker/Realtor
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indyhomepro@outlook.com
Source: Money | Repost Tim Houterloot 2/16/2020 -
Mortgage rates remain unchanged at 2.73% with 0.7 discount points paid, according to Freddie Mac’s benchmark Primary Mortgage Survey. It’s the third week in a row that rates haven’t changed, as the economy continues struggling to recover amid the coronavirus pandemic.
“It’s a tale of two economies. The services economy remains in the doldrums, but the production side of the economy remains strong,” noted Sam Khater, Freddie Mac’s chief economist. “New COVID-19 cases are receding, which is encouraging and that has led to a rise in Treasury rates.”
But, he added, “the run-up in Treasury rates has not impacted mortgage rates yet, which have held firm.”
The average rate for a 15-year fixed-rate mortgage, however, decreased by .02 percentage points to 2.19% with 0.6 points paid. A year ago the rate averaged 2.97%.
The rate on a 5-year adjustable-rate mortgage came in at 2.79% with 0.2 points paid. A year ago the ARM rate was 3.28%.
Will Mortgage Rates Go Back Down?
Mortgage rates remained flat for the third straight week, despite the yield on the 10-year Treasury note trending higher this week. The lack of movement in rates is due in part to the economic uncertainty caused by the COVID-19 pandemic. The economic recovery has slowed substantially since the middle of 2020.
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