U.S. Mortgage Rates are Poised for Record Lows. Mortgage Rates Now as Low as 4.75 Percent, Fixed for 30 Years.
By: Ed Ferrara
U.S. mortgage rates dropped again today following a decline in the benchmark 10 year treasury yield. The 10 year treasury yield, the leading indicator for U.S. mortgage rates, descended to it’s lowest level since mid May closing today at 3.30. The decline today was fueled by investor worries over unemployment numbers.
U.S. Mortgage Rates by Product:
Our research of wholesale lender’s mortgage rates shows 30 year fixed mortgage rates as low as 4.75 percent available this afternoon with zero buy down points. 15 year fixed mortgage rates as low as 4.25 percent with zero buy down points are available as of this afternoon. 5/1 ARM mortgage rates as low as 3.75 percent are available as of this afternoon. Mortgage rates mentioned do not include buy down points but do include normal points and fees associated with a mortgage. Some banks and brokers have yet to re price their rate sheets this afternoon and still offer higher mortgage rates. Improvements in mortgage rates should show by tomorrow morning for all banks. Freddie Mac reports average mortgage rates of 5.12 for a 30 year fixed.
U.S. Mortgage Rates Forecast and Trends:
Each of the past two years mortgage rates have descended drastically going into the holidays. Analysts who observe and report on the 10 year treasury yield which drives mortgage rates expect the yield to decline to 3.00 by the end of the year. If their analysis of the yield is correct fixed mortgage rates should remain under 5 percent for the rest of the year and possibly reach 4.5 percent for a 30 year fixed.
Mortgage Rates and Buying a Home:
Real estate agents believe the time is now. Mortgage rates make buying a home more affordable than ever. The government tax credit of $8,000 dollars for new home buyers is in effect until December. The median home price in the U.S. has stabilized and as a result anyone waiting for lower prices may now pull the trigger.