Mortgage rates have fallen anew and the latest rate offer currently stands at 3.66 percent from last week's 3.7 percent for 30-Year fixed-rate loans, says Freddie Mac Survey, as reported on Los Angeles Times.
On the other hand, the average offering rate for 15-year loans, reportedly decreased from 2.98 percent to 2.93 percent.
Freddie Mac, a giant mortgage-finance company, revealed that the dip of these mortgage rates being offered by lenders was due to news of weakness in the labor markets, notes LA Times.
This news may stall the Federal Reserve into increasing interest rates as recently expressed by US Central Bank Official Jeffrey Lacker in a Reuters report. Lacker stated that the Feds have a "strong case" for a rate hike this June as observed from improvements in the economic situation in the country. He especially noted better consumer spending and a stronger labor market compared to last year.
"Given what we know today, a strong case can be made that the federal funds rate should be higher than it is now. I expect that, unless incoming economic reports diverge substantially from projections, the case for raising rates will remain strong at the June meeting, " Lacker told the Greater Richmond Chamber of Commerce, as noted by Reuters.
Keith Gumbinger, vice president of HSH.com, a company that tracks daily mortgage rates said, as quoted by LA Times: "The employment report for March was rather weak, breaking a year-long string of solid gains in hiring. Is this just a dim patch in an otherwise bright pattern, or is it something more? It's hard to know with any certainty, but it should give the Federal Reserve something to consider as it pertains to the timing of any interest rate increase."
With low mortgage rates, renters and first-time home buyers who are committed to their path to homeownership may take advantage of the very low offerred rates by the lenders.
Before the supply in the market become tighter this spring, it is advisable to check out properties you have been eyeing for quite sometime. Others may have always feared that rates will increase soon. So now, as more experts provide explanation, relax and if you still can, bid on the property you like.
We just advise to prepare yourselves well and read our guide to help you decide if you should buy your home now.
