Friday, January 31, 2014 - Article by: Prospect Financial Group, Inc. -
Mortgage rates moved significantly lower on Wednesday after drifting higher during the first two days of the week. Current rates initially benefited from further weakness in equities and emerging market currencies. After the Fed made the announcement that they are sticking to their tapering plan, further reducing the amount of Treasuries and Mortgage-Backed-Securities it purchases each month by $10 billion, mortgage rates fell even lower.
Current Conforming Interest Rates:30-Year Fixed: 4.25% (4.25% APR, 0 points)15-Year Fixed: 3.25% (3.25% APR, 0 points)5/1 ARM: 2.875% (2.875% APR, 0 points)7/1 ARM: 3.29% (3.29%, 0 points)
It was a surprise that rates moved lower following the Fed's decision, because up until now, a reduction in the pace of bond buying has undeniably lead to higher rates. But in the current scenario, the emerging market weakness is being driven by tapering. More tapering means more emerging market pain, which in turn has theoretically breathed new life into bond markets and mortgage rates.
Give Prospect Financial Group, Inc. a call at 858-605-0952 to see how you can take advantage in this drop in mortgage rates!
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