Thinking of buying a home in Lake of the Woods? Mortgage Rates Continue to Drop!
Most consumers and analysts expected mortgage rates to rise sharply after the first of the year but just the opposite seems to be the case as rates continue to go lower.
For the sixth week in a row mortgage rates declined as the 30-year fixed-rate mortgage hovers near its 2015-low of 3.59 percent according to a Freddie Mac report.
"The 30-year mortgage rate dropped another 7 basis points this week to 3.65 percent," says Sean Becketti, Freddie Mac's chief economist. "This week's drop leaves the mortgage rate just 6 basis points above last year's low of 3.59 percent. In a falling rate environment, mortgage rates often adjust more slowly than capital market rates, and the early-2016 flight-to-quality has run true to form."
The quote was included in a special report on the subject by the National Association of Realtors.
"The 30-year mortgage rate has dropped 36 basis points since the start of the year, while the yield on the 10-year Treasury has dropped 59 basis points over the same period. If Treasury yields were to hold at current levels, mortgage rates might well sink a little further before stabilizing."
The NAR report continues:
"Freddie Mac reports the following national averages. The 30-year fixed-rate mortgages: averaged 3.65 percent, with an average 0.5 point, dropping from last week's 3.72 percent average. Last year at this time, 30-year rates averaged 3.69 percent.
"The 15-year fixed-rate mortgages: averaged 2.95 percent, with an average 0.5 point, falling from 3.01 percent last week. A year ago, 15-year rates averaged 2.99 percent. The 5-year hybrid adjustable-rate mortgages: averaged 2.83 percent, with an average 0.4 point, dropping from last week's 2.85 percent average. A year ago, 5-year ARMs averaged 2.97 percent."
This is good news for buyers and sellers alike. Home buyers will be able to afford more home while those who might not have qualified might now be eligible for certain loan programs. Furthermore, the increase in home purchases should spark more sellers to enter the market as they see the increased traffic form buyers. For example, the Days on the market in Lake of the Woods, dropped to only 69 days last month. A very promising trend.