Home Buyers Get Surprise Drop In Rates Below 5%
Here’s some news that is surprising a lot of people-mortgage rates have dropped below the 5% level.
The housing industry had been bracing for a season of rising interest rates brought on by the end of the Federal Reserve $1.25 trillion (yes, trillion) mortgage-securities purchase program.
Instead, many in our industry now say rates could drift as low as 4.5% this summer from 4.86% now, instead of climbing up to 6% as economists projected.
Translation? Lower payments for buying homes or refinancing.
Find out how the financial problems going on in Greece and all of Europe is actually helping you the buyer …
The Wall Street Journal recently reported that this unexpected drop in rates are happening as a result of the financial problems in Europe.
As the European markets continue to become more unstable, international investors are putting their money into the U.S. as a safer haven for their investments. This inflow of international investor money has pushed our mortgage rates in the U.S to the lowest levels of the year … and near 50-year lows according to the WSJ.
Until 2003, rates on 30-year fixed rate loans hadn’t dipped below 5% since the 1960s. We know that rates cannot stay this low forever. Now may be a historical window of opportunity for potential home buyers and those wanting to refinance.
If you would like to take advantage of the times, call Finding Homes for You at 636-386-0659. We only work for you, the buyer, and we can put you in touch with reputable local lenders for both refinancing and purchases of St. Louis Real Estate.