Mortgage rates creep down toward 4%

feb 2014 econ map

(CNNMoney)

Maybe the days of rock-bottom mortgage interest rates aren’t numbered, after all. Once again, rates are creeping down towards 4%.

Rates dropped 0.09 percentage point this week to 4.23% for a 30-year, fixed -rate home loan, according to the latest weekly report from Freddie Mac.

Mortgage rates started the year at 4.53%, and have sunk each week in 2014, falling a total of 0.3 percentage point.

Borrowers with a 4.23% mortgage would pay $982 a month on a $200,000 balance, compared with $1,017 on a 4.53% loan.

Frank Nothaft, Freddie Mac’s chief economist, attributed the move to cooling home sales.

“Mortgage rates fell further this week following the release of weaker housing data,” he said. “The pending home sales index fell 8.7% in December to its lowest level since October 2011.”

The drop in mortgage bond purchases by the Federal Reserve, the so-called taper, that started last month, was expected to push rates gradually higher.

But worrisome economic news and a plunge in stocks has counter balanced the Fed action, according to Keith Gumbinger of HSH.com, a mortgage information company. Anxious investors have scurried to safe havens like treasury bonds and mortgage backed securities.

“Much to the benefit of mortgage shoppers, this move [to bonds] is dragging down yields and mortgage rates,” said Gumbinger. “This is a nice surprise” for people looking to purchase or refinance their homes in a rising rates environment, he said.

Rates may keep dropping, according to Gumbinger.

“The reduction in Fed support, slowing manufacturing activity here and in China, some less-than-stellar figures on consumer spending, housing, and more are causing some concern that the economy has decelerated over the last couple of months,” he said. “The economy doesn’t need to slow very much to put us back into the kind of funk we’ve been hoping to escape since the recovery began several years ago.”

This entry was posted in CMCA by CMCA ~ The Essential Credential. Bookmark the permalink.

About CMCA ~ The Essential Credential

CAMICB is a more than 25 year old independent professional certification body responsible for developing and delivering the Certified Manager of Community Associations® (CMCA) examination. CAMICB awards and maintains the CMCA credential, recognized worldwide as a benchmark of professionalism in the field of common interest community management. The CMCA examination tests the knowledge, skills, and abilities required to perform effectively as a professional community association manager. CMCA credential holders attest to full compliance with the CMCA Standards of Professional Conduct, committing to ethical and informed execution of the duties of a professional manager. The CMCA credentialing program carries dual accreditation. The National Commission for Certifying Agencies (NCCA) accredits the CMCA program for meeting its U.S.-based standards for credentialing bodies. The ANSI National Accreditation Board (ANAB) accredits the CMCA program for meeting the stringent requirements of the ISO/IEC 17024 Standard, the international standards for certification bodies. The program's dual accreditation represents compliance with rigorous standards for developing, delivering, and maintaining a professional credentialing program. It underscores the strength and integrity of the CMCA credential. Privacy Policy: https://www.camicb.org/privacy-policy

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s