For the week ending October 8, Freddie Mac announced that 30-year fixed rates fell one tick to 2.87% from 2.88% the week before. The average for 15-year loans increased one tick to 2.37% and the average for five-year ARMs decreased slightly to 2.89%. A year ago, 30-year fixed rates averaged 3.57%, .70% higher than today. “The year-long slide in rates on home loans seems to be ending as rates have flattened over the last month and the economic rebound has slowed. But with near record low rates, buyer demand remains robust with strong first-time buyers coming into the market. The demand is particularly strong in more affordable regions of the country such as the Midwest, where home prices are accelerating at the highest rates over the last two decades,” said Sam Khater, Chief Economist, Freddie Mac.
However, according to one loan guru looking at the whole picture and whether we will see rates improve or not, he believes that there are other factors that may come into play- especially during this month leading to November. The idea of a stimulus package getting done before the elections has all but disappeared, as talks have devolved to a bunch of political finger pointing. He states that regardless of which side of the aisle you’re on, “these folks all have serious ego problems that get in the way of doing what they were elected to do”. The only good thing here is that a lack of a stimulus bill helps bonds to hold steady, no longer afraid of a glut of supply. That in and of itself will calm the seas of a rising and/or falling tide of radically moving interest rates.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.