Jan 01, 2014

December 2013 Mortgage Interest Rates

 

 

- originally posted December 1, 2013 -

Last Month, Mortgage interest rates dropped on weaker than expected economic news. This past two weeks though, anticipated employment numbers and the economic perspective of investors appears to be stronger than expected.  This has caused the drop in rates to reverse course - at least temporarily. 

When rates drop, its usually a result of less than desirable economic news,
which causes bond prices to climb and interest rates to fall.

What the investment markets appear to be waiting for right now though, is a report about job losses and economic activity that stemmed from the government shutdown in October.  Speculation has it, that the real impact of the shutdown hasn't yet been factored into the numbers that investors are relying on.  When those numbers are reported, it is anticipated that further adjustments and declines will occur on the mortgage interest rate front, especially as we near the end of this calendar year. 

 

Because there is going to be a significant amount of data being released the first week of December, which will impact the direction of interest rates for the remainder of the month, I will most likely update this post once those key statistics are published.

Till next month,

 

Interest Rates As Of December 1st, 2013

6-month trends graph - as of December 1st, 2013

 

 

 

 

Interest Rate Advice

The long term expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow me to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are still quite a bargain!