Mortgage interest rates continue to remain favorable, & over the past few months, there has been very little “trending”, either up or down. The U.S. 10 year treasury note has bounced between a yield of 2.60% & 3.0% over the last three months, which is a fairly tame range. The 10 year note is often viewed as a market bellwether, & mortgage rates tend to follow the direction of this treasury security. Thirty year fixed rate mortgage loans remain in the 4.5-4.75% range, & fifteen year fixed rate mortgaged remain below 4.0%. These rates assume that no points are being paid, and will vary based upon credit score, loan amount, down payment, & other factors that lenders must adjust for. If you look to the historical chart that in my blog post entitled: The Road Ahead: Home Finance in 2014, you will note that we remain at very low rates, historically. Interestingly, there has been renewed interest in adjustable rate mortgages ever since interest rates bottomed out in the spring of last year. Without a doubt, we are off of our lows from that time period, & rates are about a full percent higher than in May of 2014. Does this provide justification for folks to turn away from the safety of the fixed rate loan? Watch this space; we’ll explore that topic in my next blog post.
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