Mortgage Rates Hit 3-Year Low

After steadily declining in the past few weeks, yesterday thirty year fixed mortgage rates reached 3.58% (some lenders were even offering rates as low as 3.55% to top tier borrowers). The lowest rate since May 2013. Over the last 52 week rates have ranged between 3.55% and 4.20%. It should be noted that these rates are so called “best execution” (that is, the most frequently quoted, conforming, conventional 30yr fixed rate for top tier borrowers with no loan origination or discount points).

If you are going to finance a home purchase, now might be a fabulous opportunity to buy. Although rates have followed an increasingly narrow range since February, there are a couple of things that you should know. One is that the Federal Reserve Bank is going to meet next week and will announce any change in the Federal Discount Rate on Wednesday. Fear has been increasing that they will announce an increase after next weeks meeting. However, it is still generally thought that Fed will hold off on any rate hike at least until July. The other item to be considered is the July 23rd vote regarding Britain’s possible exit from the European Union. The possible impact of that vote on US mortgage interest rates is uncertain, however, I think that regardless of the outcome of that vote the impact will be muted. The greater impact would be a Fed rate increase.

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