Interest Rates Heading Down (Savvy Buyers Snapping Up Homes)
Savvy buyers are locking loan rates and jumping back into the market. As reported by Inman News, yields on 10-year Treasury notes dipped below 4% for the first time in two-and-a-half years, as investors pulled money out of equities and elected to put that money into the safe and predictable realm of bonds. Yields on the 10-year Treasury note were at 3.83% Monday, down from the high of 5.26% on June 12th.
The 10-year Treasury note is monitored very closely by the real estate industry because it generally tracks the interest rates on 30-year, fixed-rate mortgages. While the current spread between 10-year Treasury notes and 30-year mortgage rates is about 2% (up from the historical average of 1.5%), mortgage rates are certainly headed downwards and are nearing 6%.
Interest rates last week on 30-year fixed-rate mortgages averaged 6.2% at 0.5 point (compare this to the 6.73% we saw in July). Last week’s average rate was the lowest since May, when lenders charged an average of 6.15 percent. If you have any questions about how rates impact your bottom line, call Kyle at (415) 350?9440.