Interest Rates Are Lowest Since February
According to The Chicago Tribune , mortgage rates have reached a new low, which is great news for buyers on the market now. The Associated Press wrote that “[r]ates on 30-year and 15-year mortgages this week dropped to their lowest levels since late February.”
Here’s what this development means for home buyers and real-estate investors:
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As long as inflation is held in check there is little or no pressure to push mortgage rates higher,” said Frank Nothaft, Freddie Mac’s chief economist. Despite high fuel prices, “core” inflation–which excludes food and energy costs–seems to be fairly tame, he said.Mortgage giant Freddie Mac reported Thursday in its weekly survey that rates on 30-year, fixed-rate mortgages averaged 5.71 percent, down from 5.77 percent last week.
Analysts attributed the decline in mortgage rates to reduced fears on the part of investors that the economy might face an outbreak of inflation.
Already this week, rates dropped to 5.27 percent from 5.33 percent last week for a 15-year, fixed-rate mortgage. If you are getting ready to refinance, this could be the time for you!