Rates Dropping in 2016
Believe it or don't, mortgage interest rates are dropping so far in 2016. I know, I know--the Fed raised its rates a few weeks ago. Usually, mortgage rates would follow suit, but, so far in 2016, they have actually fallen every week in the new year.
Mortgage rates have declined every week so far in 2016 and are currently at their lowest levels since the fall, a fact that could help motivate hesitant homebuyers who have been sitting on the fence.
That’s according to the most recent numbers from Freddie Mac, which said that 30-year, fixed-rate mortgages fell to 3.81 percent for the week ended Jan. 21, down from 3.92 percent from a week earlier and up from 3.63 percent a year ago. Fifteen-year mortgage rates displayed a similar pattern, dropping from 3.19 percent to 3.10 percent on a weekly basis but up from 2.93 percent year over year.
In a statement accompanying the report, Freddie Mac Chief Economist Sean Becketti attributed the declines to weak inflation in 2015 and global economic turmoil, which is driving investors to treasuries.
All this aside, most experts feel that the general trend going forward is likely to be a slow gradual increase. How does this affect you? If you're a buyer, it means that the sooner, the better to get going! If you're thinking of selling, the answer is similar. The sooner your home is on the market, the sooner you can have buyers thinking about its purchase--before they get hit with even slightly higher borrowing costs.
How to prepare for either situation? Call us--we'd be glad to help! Peter: (415) 279-6466; Jane: (415) 531-4091.