Stop the Presses! America's Long-Term Mortgage Rate isn't just low. It tumbled to its lowest point in history.On Thursday, March 5, the 30-year mortgage rate fell to 3.29%, an
Mortgage Rates Fall To Largest Single Week Decline In Over A Decade
This column was purposely written on the last day of March, so homebuyers would not take it as "Fools Gold" on April 1st. The truth of the matter is mortgage rates have fallen dramatically and borrowers should rush to lending institutions to take advantage.
"Average 30-year fixed-rate mortgages declined by 22 basis points from 4.28 percent to 4.06 percent," according to Freddie Mac's Primary Mortgage Survey. This resulted in the biggest single-week decline in rates since 2008.
The sharp drop is due to the nation's economic growth, which the Federal Reserve predicts will slow down soon. The rate announcement also spurred a collection of tweets by Freddie Mac's chief deputy economist Leonard Kiefer.
“One-week changes this large are pretty unusual,” said Kiefer, while driving home the rarity of a 22-point basis-point drop. He then backed it up with a color-coded chart that showed weekly mortgage rate trends from the past 48 years.
Freddie Mac chief economist Sam Khater chimed in as well, with words that are bound to get home sellers excited.
"We have recently seen home sales start to recover," Khater explained. "With this week's rate drop, we expect a continued rise in purchase demand."
Since the start of the new year, homebuyers in the DC Metro area have had a hard time getting motivated because of a cold winter and the month-long shutdown of the Federal Government. But the time to act is now, as sellers prepare for a spring buying season that should prove lucrative.
The lower rates will save buyers approximately $15.85 each month for every $100,000 they borrow, according to Bankrate economist Deborah Kearns.
“At the current 30-year fixed rate, you’ll pay $487.27 each month for every $100,000 you borrow, down from $503.13 last week,” she explained.
That increased spending power should renew the interest of buyers and put a spring in their steps as the weather warms.
* Blog quotes courtesy of Inman.com
Joe Versage is a former TV sportscaster who uses his competitive nature to win deals in real estate. As founder of the Versage Group, Joe serves residential realty clients in Northern Virginia and ref....
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This column was purposely written on the last day of March, so homebuyers would not take it as "Fools Gold" on April 1st. The truth of the matter is mortgage rates have fallen dramatically and