Jul 01, 2014

June 2014 Mortgage Interest Rates

- originally posted June 1, 2014 -

Rates have been falling over recent months and are now at the lowest levels since the summer of 2013. We may not yet have seen the lowest rates we're going to see this year, but that doesn't suggest that rates will go much lower.

Let's talk about what affects interest rates and why rates have been falling steadily in recent months. Unemployment numbers continue to be released that suggest an improving employment outlook. These unemployment numbers are skewed and misleading though, because they don't take into account all of the workers who've left the job market and who'd otherwise be working.

Although job numbers say one thing on paper, the 'labor force paticipation rate' remains the lowest since 1978, and that number isn't looking like it'll change anytime soon. Truth is, we're trapped in a slow moving economy that sees little real growth potential. The financial markets on Wall Street have figured this out, and in spite of the jobs gains on paper, interest rates haven't spiked-up like you'd expect them to, because of this lack of real economic growth. As long as investors perceive weaknesses in the economic outlook, mortgage rates will remain stable and low.

Stay tuned for more updates.  Till Next Month,

Michael Dagner

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