The Best Mortgage Rates....Ever?
Although I rarely comment on interest rates, historic developments cannot be ignored. Yields on 10-year treasury notes reached their lowest point ever today, dropping to 1.70. And mortgage interest rates, which move in tandem, followed suit. We are currently seeing the lowest mortgage rates ever, and with the European Union’s crisis of confidence caught in a tail spin, there is a fair chance interest rates may drop farther.
The last time we saw interest rates at similar, all-time-low levels (September 2011) they rapidly shot up as if rejected by unfamiliar territory. That aside, and though I may soon find myself dining on braised crow, I feel there is a very good chance that we’ll see these uber-low rates stick around for a while.
Recent elections in France and Greece, amid mounting unrest throughout the EU over proposed austerity plans, seem to have set off a chain reaction with no end in sight. Greece’s failure to form a coalition government has European leaders openly discussing its possible default and exit from the euro. The European Central Bank recently stopped its support of Greece’s banking system and the general picture is one of a house of cards set to collapse. Spain, Italy, Portugal, and Ireland are all suffering increasing costs to service their debts and are fertile ground for the spreading contagion. This is not the sort of mess that is resolved overnight…
If every dark cloud has a silver lining, the only bright spot I can see in the European debacle is the drop in U.S. interest rates. Those looking to refinance or buy a property in the coming months should benefit from exceptional financing. Here is a sampling of current mortgage rates on conforming loans:
Conforming loans to $417,000:
30-year fixed at 3.625% (APR 3.631%). No points.
15-year fixed at 3.125% (APR 3.128%). No points.
High balance conforming loans to $625,500:
30-year fixed at 4.0% (APR 4.03%). No points.
15-year fixed at 3.25% (APR 3.29%). No points.