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Fixed Interest Rates See Lowest Mark Since February
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LOS ANGELES -- If in the market for a
home purchase loan,
whether you happen to be a
first time home buyer,
a seasoned homeowner planning to buy your next or perhaps even a borrower
searching for a lender who deals with bad credit home loans,
you have a unique financial edge right now as interest rates for 30 and 15 year
fixed rate mortgages are at their lowest level since February.
On Thursday Freddie Mac, the mortgage industry authority, reported in its weekly
survey that interest rates for 30-year, fixed-rate mortgages clocked-in at 5.71
percent. That's a significant down step even as compared to last week's low
5.77%.
Even the best eye-in-the-sky analysts can be seen with a raised brow, showing
surprise that rates are actually at this low of a historic level. Especially
when you consider that 2005 was rubber-stamped by forecasters across the board as
a year that calls for interest rate hikes to offset inflationary pressures and
keep the consumer economic situation overall in-check.
The largest factor affecting the declination of benchmark interest rates, which
are set by the Fed, is a lack of squeamishness by investors who, on the whole,
feared a nasty belt of inflation was sure to have hit by this time. It appears
those fears have been relaxed in recent weeks following the latest FOMC report
noting the stability of our economic situation and the fact that Washington has
a tight grip on inflation.
"As long as inflation is held in check there is little or no pressure to push
mortgage rates higher," said Frank Nothaft, Freddie Mac's chief economist.
Despite high fuel prices, "core" inflation--which excludes food and energy
costs--seems to be fairly tame." The measurements of U.S. core inflation is
watched like a hawk by the Federal Reserve, economists and investors alike.
Our advice to consumers who wish to qualify for a new home loan or other
mortgage type is to get financed while the getting is good, as rates will only
hold at such low levels for a short time longer. Interest rates defy the old
adage, "what goes up must come down." Rather, in this case you may be certain it
would read, "What went down must surely go up." - By Nolan Voight, Mortgage and Finance Columnist.
Email
Nolan Voight.
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