Static Mortgage Rates Fit the Pattern

Early, alarming predictions for a dramatic surge in mortgage rates in 2018, have so far fallen flat. True, home buyers have seen incremental increases in rates for home loans since January, but in more of a one-step-forward-and-two-steps-back pattern.

I’m cautiously optimistic that this might continue for three significant reasons. First, the country’s economy appears to be strong but strangely unpredictable. Second, In most places, unemployment is way down. CNBC reports “There are more jobs than people out of work, something that the American economy has never experienced before”. But the job market has changed over time and much of our available workforce is not trained or educated for future business opportunities. Finally, America is aging. Healthcare options are ambiguous and expensive. From what I can see, it’s entirely possible that the Fed will remain reluctant to make any drastic moves regarding interest rates, at least for the foreseeable future.

This all bodes well for the Real Estate market which has taken more than its share of hits in recent years. Home Buyers still outnumber Home Sellers in many parts of the country but this may be leveling off… gradually. I’ll keep you updated.

In the meantime, take a look below at the not-so-alarming, I’d even say low, mortgage interest rates.

Mortgage Rates Stationary

By RISMedia Staff

The average 30-year, fixed mortgage rate was 4.53 percent this week, barely moved from 4.52 percent the prior week, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed mortgage rate was 4.02 percent, up from 3.99 percent, and the average five-year, Treasury-indexed, hybrid adjustable mortgage rate was 3.86 percent, up from 3.74 percent.

“The 10-year Treasury yield continues to hover along the same narrow range, as increased global trade tensions are causing investors to take a cautious approach,” says Sam Khater, chief economist at Freddie Mac. “This in turn has kept borrowing costs at bay, which is certainly welcoming news for those looking to buy a home before the summer ends.”

“A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits,” Khater says. “This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search.”

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Bill Salvatore / Arizona Elite Properties
Residential Sales, Marketing, and Property Management

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