Over the last couple of weeks we have seen mortgage interest rates drop to levels never seen before for conforming loan amounts! FHA loans also have very low interest rates. We had expected interest rates to start rising after the Fed stopped buying mortgage backed securities at the end of March. Instead due to different political events, rates have been dropping.
Usually we know what is going to affect mortgage rates, such as unemployment reports, inflation numbers, new and existing home sales. What we don't know is what is happening in the world. Over the last couple of months we have had debt problems in Greece, a volcano in Iceland that interrupted flight travel, problems in Greece spreading to Europe and the Euro and now North Korea threatening military action against South Korea. All of these events have sent investors to relatively safe investments in federal treasury securities and mortgage backed securities.
We don't know how long these rates will continue. If you are thinking about buying or refinancing a home, contact your loan officer and see where rates are and what you can qualify for. If you wait thinking rates may drop more, you could lose out. We never know where the bottom is until rates have started to go back up! If you are interested in refinancing, the value of your home may play into your ability to refinance. However, you won't know that unless you contact your loan officer. If you don't have someone you can contact, feel free to call or email me.