Jul 01, 2015

June 2015 Mortgage Interest Rates

- originally posted June 1, 2015 -

Interest rates increased 'just slightly' over past 30 days.  Overall, mortgage rates have bobbled-up and down within a pretty consistent range for the past several months.

Current rates are: 3.75% on an FHA 30-year fixed rate, and 4% for conventional. The rate on a 15-year fixed rate mortgage is approximately 3.125%. 

What's keeping interest rates low are all the usual suspects. Slower economic growth, lack of new jobs, increases in household income, a decline in personal spending, etc.  Data shows that the national economy actually contracted in 1st quarter, and that people are not spending money.  

Another contributor to the lack of personal spending, may be the 'increased housing costs' resulting from limited housing inventories across much of the country.  Without an adequate supply of homes, or a sufficient number of current homeowners re-entering the housing market as new buyers (post sale), prices may continue to rise.  The resultant 'high housing costs' mean there's less discretionary income available to many consumers, and that hurts everyone.  At least two-thirds of our economy is driven by personal spending. This is why balanced markets of supply and demand are so important.

Although most people love the low interest rates, in a round-a-bout way, they're contributing to higher costs elsewhere.  See more in "today's rates", below. 

Till next month,

Michael Dagner

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