Mortgage rates dropped to a six week low this week with some lenders advertising rates below the magic 5% mark again. Strong demand for treasury auctions and declines in the stock market triggered the improvement.
“The market has been like a roller coaster,” warns Residential Mortgage Center CEO, Chris Conlon. “Rates are up one week and down the next,” he said. “Folks who are interested in buying a home or in refinancing their existing home had better act fast to take advantage of the low rates.”
Mortgage experts agree that there is volatility in the market. The long term outlook, however, is that these low rates will eventually disappear. Mortgage rates are driven by the yield on Treasury securities. As the economy improves, those rates will increase and mortgage rates will increase with them.
Having said that, the expectations of most mortgage experts is that mortgage interest rates will remain a bargain over the next month.
Tom Estes
tomestes@redhotrates.com
Board of Directors Member
The North Carolina Association of Mortgage Professionals
http://redhotrates.com/
704-926-5626
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