“Mortgage rates were little changed amid a week of light economic reports. Of the few releases, industrial production rose by 0.2% in June, below the market consensus forecast. Also, the producer price index for final demand rose 0.4% in June, rebounding from a 0.2% decline the prior month,” said Frank Nothaft, vice president and chief economist with Freddie Mac.
“Like many Americans, mortgage rates seem to be taking a midsummer vacation. Economic news has been mixed, and Federal Reserve Chair Janet Yellen's recent Senate testimony indicated that the central bank will not announce a rate hike anytime soon. That's good news for borrowers who have not refinanced yet or need more time to find a house. But don't expect mortgage rates to rest forever,” Bankrate said.
According to Freddie Mac's primary mortgage market survey, mortgage rates have slowed, moving toward historic lows. In the past couple of weeks a 30 year FRM (Fixed Rate Mortgage) was hovering around 4.15%, compared to last weeks 4.13%. It might not seem like much, but trust me if you run the numbers it really can make a difference. These low interest rates are keeping the buyers happy in this competitive market. If you have the means of going with a 15 year FRM, you can really save some money. 15 year FMRs are about a point lower than the 30 year. Compare these numbers to the 2013 averages, the 30 year FMR was around 4.37%. Buy now to save money! Once Freddie and Fannie stop buying up secondary market loans the averages are going to go up!
Jason Moon Real Estate Broker with ColdWell Banker Bain. Seattle, WA