Rates are dropping
Just two weeks ago, I posted an article discussing where mortgage interest rates may be heading over the next twelve months. I quoted projections from Fannie Mae,Freddie Mac, the Mortgage Bankers’ Association and the National Association of Realtors. Each predicted that rates would begin to rise slowly and steadily throughout 2016.
However, shaky economic news and a volatile stock market have actually caused rates to drop six out of the last seven weeks, and have remained at 3.65% for the past two weeks.
Rates have again fallen to historic lows yet many experts still expect them to increase in 2016. The only thing we know for sure is that, according to Freddie Mac, current rates are the best they have been since last April.
Bottom Line
If you are thinking of buying your first home, downsizing, moving up to your ultimate dream home or re-finance your current rate, now is a great time to get a sensational rate on your mortgage. It may also be possible to achieve a lower rate as the 7/1 Arm has dipped below 3%. Calculate how long you will be in the home or need the loan for and choose the product that works best for your needs.