Mortgage rates have been fairly steady all year. There has been some movement up just a little but in the last week or so, rates have dropped back down a little. The movement up was only about .125-.25%, so not drastic at all.
This week there has been more news coming from Europe, specifically more about Greece. The latest news from Greece indicates that they have not been about to create a new government after the last elections and so may be taking another stab at the electoral process. The European Union has also stated that Greece must comply with it's austerity agreement to receive further aid. Without that agreement, the country will likely be forced to leave the European Union. The political struggles make it more likely that the country may go bankrupt before the summer is out.
Struggles in European countries bring more money into the US treasury and mortgage backed securities, which helps keep our mortgage rates lower.
The Federal Reserve believes interest rates may stay low into 2014, however it will all depend on what happens with the economy and global conditions. The Fed will eventually begin raising rates as there is more concern about inflation but they are trying to keep rates as low as possible for as long as possible.
Interest rates are extremely low now and if you are thinking about buying a new home or refinancing, now is a great time to do so! We know that even though the plan it to keep rates low, anything can change that. We also know where rates are today, but no one knows for sure where they will be next fall!
Leslie Vanderwerf, NMLS ID#335509, Summit Mortgage - Email – Website
