Looking at the short term, rates have a good chance of the past 5 times the average 30 year fixed rate has declined two days in a row, the 3rd day is followed by a rise.
Chicago, IL (PRWEB) February 03, 2014
Mortgage rates continued their firm decline on Monday, February 3rd with as investors continued bidding up bond prices and mortgage backed securities on fears of global growth rates falling. Regardless of the headlines and stock market sell-offs, Peoples Home Equity believes prospective home buyers are benefiting the most from the current situation.
According to a MortgageNewsDaily.com release on February 3rd titled "Mortgage Rates Plummet, Benefiting From Broader Market Fears" rates are on track to slide for the 5th consecutive week. Rates are already at levels not seen since November 2014. Looking at the short term, rates have a good chance of the past 5 times the average 30 year fixed rate has declined two days in a row, the 3rd day is followed by a rise. Currently, the rate on a 30-year fixed loan is 4.28% and for a Jumbo loan it’s 4.19%!
Prospective home buyers now have an opportunity to purchase a home at a fixed rate over 0.30% lower than a month ago! This savings equals thousands, if not tens of thousands of dollars in interest payments over the course of a mortgage, especially on a 30 year loan. Peoples Home Equity encourages all readers who are thinking to apply for a home loan to do so now and lock in the low rate the market is offering. Rate are not expected to remain this low forever, especially since the Federal Reserve plans to further taper is long standing quantitative easing program.
Peoples Home Equity expects rates to find strong support at 4% and for tight inventories to push home prices higher. There may be no better time than now to take the money and run as both home prices and mortgage rates are expected to rise this year.