Apr 01, 2014

March 2014 Mortgage Interest Rates

- originally posted March 1, 2014 -

Rates have been steady for about a full month now.  Movement has been within 1/4 of a percentage point, up or down. The 30 year rate on FHA loans is currently hovering at 4.0% (or just below), and 15 year conventionals are coming in at 3.4%.

As we continue to get more accurate data coming in about the economy from last year, economic growth was weaker than the experts said. Long-term concerns that may help mortgage interest rates drop even more, is the revised data about last year's GDP and the declining labor force participation rate. With this news alone, rates could have dropped a little further in recent weeks, but the wizards of Wall Street always keep things interesting.

Employment numbers continue to improve (on paper), but the actual monthly jobs reports haven't been good. The reason unemployment numbers fall in spite of bad jobs reports, is because workers are dropping out of the labor market, and thus are not counted after their unemployment compensation ends.

Will current economic concerns lead to lower interest rates anytime soon? The jury's still out on this. As soon as you think you know what's may happen next, something changes. My advice on rates is to not get comfortable with the recent drop in rates. Lock them to be safe!

Stay tuned for more updates.   Till Next Month,

Long-Term Interest Rate Advice

The 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!

Michael Dagner

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