Yet again, the Fed lowered another 0.25% rate yesterday which was anticipated by the market gurus. What does this do to the mortgage rates?
According to Freddie Mac, the 30-year fixed rate mortgage is currently at 3.73%, up 17 basis points from last week. The dropping rates phenomenon got drastic turned since September 5. It’s like a roller coaster. Stock market has increased 8 days straight which caused the bond market to be increasing the rates to attract the investors. While Fed’s decision was inevitable, the mortgage rates have reflected this result before September 18.
Mortgage rates generally track the 10-year Treasury note, and the note has been falling since mid-August. It has rebounded a little bit with the optimism from the trade talks between the U.S and China. Freddie Mac attributes the fall in mortgage rates to the weaker economic data, but regardless of the reason, it’s a huge plus for the consumers.
Although the interest rates have been up comparing with last week, it is still 92 basis points BETTER than a year ago. Speak with a mortgage professional to explore the refinance possibilities today.