Sep 01, 2015

August 2015 Mortgage Interest Rates

- originally posted August 1, 2015 -

As we enter August, the story with mortgage interest rates is that they rose during July, then fell back to the same level we saw the end of June. Presently, the current rate on a 30-year fixed conventional loan is 4.125%.

Just days ago, the Fed issued a policy statement about its prospects for raising interest rates later this year. Although the Fed remained cautious in its remarks, they did express that the economy was expanding moderately, and that the risks of raising interest rates was more balanced now, than in previous years. That said, the Fed remains concerned about inflation, jobs, and to a lesser extent, the direction of the global economy.

If rates do rise yet this year, that probably won't happen for a few months, and perhaps the beginning of the 4th quarter. If this does occur, any rise in short-term rates by the Fed will trigger a ripple effect for long-term mortgage rates, as well. If you've been contemplating a home purchase anytime soon, now's a perfect time to call me before a rise in interest rates makes the purchase slightly less affordable.

Till next month,

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.