Geopolitical strife, weakness in the world markets…what does this mean for mortgage interest rates? It could trigger a move downward. With all this uncertainty, investors look for a safe investment and one of the safest is U.S. Treasury bonds. As demand for bonds increases mortgage interest rates will decrease.
Also Janet Yellen’s testimony may have helped. She indicated there was going to be no immediate changes to the Fed easing monetary policies because of underlying market weakness.
With mortgage rates at 1 year lows, and Coastlend’s 5% down payment loan with NO PMI, buying a home is relatively cheap. We’ve seen home prices climbing in many cities across the country and the spring buying season hasn’t even begun, so this could push prices even higher. If buying a home is on your radar, now is a good time to act before rising prices and rising mortgage rates price you out of the market.