“In its June meeting, the FOMC made a decision to keep the fed funds rate unchanged following a weaker than expected employment report for May as well as continued uncertainty in the global financial markets”.
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Five out of six mortgage borrowers will see no immediate benefit if, as expected, the Bank of England cuts interest rates on Thursday.
The best 30 year jumbo fixed rate mortgages are being quoted at 3.375% at the bank yielding an April of 3.408%.
The survey reports that the average contract interest rate for 5/1 ARMs decreased to 2.78% from 2.85% last week.
Locking in reduced rates when the rates are low can protect mortgage owners against a rise in variable rates when the cycle turns.
According to Freddie Mac, the 30-year fixed-rate mortgage forecast has been revised down for both 2016 (by 30 basis points) and 2017 (by 50 basis points) to 3.6 percent and 4.0 percent, respectively.
Although since settled, the vote by Britain to exit the European Union in late June initially rattled markets around the world.
Applications to refinance an existing mortgage are surging, and low rates may continue to entice homeowners for some time to come.
“It’s not clear how long the recent run of falling rates will last”, adds Gumbinger.
VA 30 year mortgage interest rates have been quoted at 3.400% and an April of 3.6010%. Still, the mid 1.5% territory in 10yr yields is a bit of an inflection point for the overall rate market, and general trends in the overall rate market will influence the direction of mortgage rates. As such, even if not always approaching record lows, mortgage rates should remain highly favorable throughout the summer and fall.
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Additionally, lower rates means that the actual volume of money being loaned out increases. Zillow Mortgages also provides mortgage calculators, mortgage advice, mortgage widgets, and lender directories. Rates on a 30-year FHA-backed fixed-rate loan dropped from 3.56% to 3.53%. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.
