After hitting all time lows last November, mortgage interest rates have been slowly inching higher for about three months since then. That trend higher reversed last week as volatility in the stock market sent investors back into government bonds which in turn pushed mortgage interest rates lower. As we have discussed in the past, the yield on the 10 year T-Note tends to mirror mortgage interest rates. So in general, when government bonds gets more popular with investors, mortgage rates dip.
Of course markets are famously unpredictable so there is no telling if this latest dip in rates will last. So contact us in the sidebar now to get more information on the government-backed programs that are available and perhaps get an estimate.
March 17th, 2013 at 4:27 am
Hi there,
Thanks for this insightful post. I think now that the government has cut down on spending, we’re going to see even more favorable mortgage rates for at least a year. This is great news for individuals looking to purchase property once again after the acrimonious crash about five years ago. I’m bookmarking you for more updates in the coming weeks.
Alana
April 28th, 2013 at 11:47 am
Yeah, will this lower morgage interest rate last? Hard to tell, but I would guess no. Looking at the long run since November, it has all been uphill, and this might just be a temporary dip in an otherwise uphill year or two for morgage rates