Yesterday, mortgage rates dropped to levels we have not seen since early November 2010. To be clear: 30 year fixed rate home loans from 3.875% to 4.375% are well within striking distance for the vast majority of borrowers.
This is a level that many thought we’d never see again, and a testament to the staying power of our economic non-recovery. Thought to be a spring “soft patch,” nearly every meaningful measure of economic activity continues to dissapoint.
Add to that the simmering cauldron that is the European sovereign debt situation system, and you have risk averse investors running for safety in the US bond markets, including the mortgage bond market. All this inflow has driven bond prices higher and yields (or rates) lower.
On the brighter side – both current and aspiring homeowners have been granted a second bite at the low interest rate apple. If you missed the boat last time around, or happen to be in the market for a new home, do a little happy dance then skedaddle over to your lenders office to consider locking things down.
The market waits for no one, and this window may slam shut before we know it.
Shopping Mortgage Rates? Need a Rate Quote? Regulatory reforms in the mortgage industry have created some of the largest differences in rates quoted between lenders I have seen in 15 years. If you are in the market for a home loan and have not already locked in, shop around.
Not sure who to call? Drop me a line – I don’t bite, and personally answer my own calls and email.