Interest Rates are Down
I’ve been working on listings more than buyers for a bit until recently. I had two offers to write yesterday, and was surprised to see the 30 year conforming at 6.125 and the jumbo at 6.375.
My perception was that interest rates were climbing, but looks like they are back down. Would love to hear from some lender types on this board with regard to what’s happening with rates. Last I heard the prediction was they are going up, up and up again. So I was surprised to see them so low. Anyone have any news about what’s happening with rates generally?
Posted: August 16th, 2006 under General Real Estate.
Tags: banks, interest, lenders, rates
About the Author: Ardell DellaLoggia
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Comments
2.
Comment
from philleto
Time August 16, 2006 at 2:19 pm
The “pause” in the fed rate hikes means that inflation is at bay. (Actually the Feds were split on the rate increase.) Inflation is a known cause for bond prices to rise which also means rates rise.
I agree Grier. Lock in today.
Here’s the response by Freddie Mac to the rate decrease:
“The weaker than expected jobs report combined with the Fed’s decision to pass on raising rates at its last meeting led directly to lower rates this week,” said Frank Nothaft, Freddie Mac vice president and chief economist.
3.
Comment
from ARDELL
Time August 16, 2006 at 2:34 pm
Does anyone have a “lock rate while you look at homes” option these days? Could come in handy this week. With a floatdown, of course.
4.
Comment
from philleto
Time August 16, 2006 at 6:15 pm
A handful of mortgage companies have “Buyer Ready” programs where you lock without an address with the ability to float. However, most require an actual address to lock a rate.
5.
Comment
from Chris
Time August 30, 2006 at 10:57 am
There are a couple lenders who will allow a property to be locked. No Float down on that program tho….
6.
Comment
from ARDELL
Time August 30, 2006 at 1:25 pm
Good time for a follow up…interest rates were staying down as of early this week.
1. Comment from Grier Smith
Time August 16, 2006 at 8:43 am
A weak PPI report showed that inflation currently remains under control. In addition, a report published today indicated that core prices rose less than expected at the consumer level.
All of which are great news for the bond market and mortgage rates. It also makes another Fed rate hike at the September meeting less likely.
I would probably lock a rate if I was closing a loan in the next few days. I feel that we often see an emotional rebound when rate drop quickly, and we might see rates come up a little in the short term.