May 01, 2016

May 2016 Mortgage Interest Rates

- originally posted May 1, 2016 -

Mortgage rates are holding their ground from last months' lows, but they aren't predicted to drop further. The current rate on an FHA 30-year fixed rate loan is 3.25%. The 15-year has now dropped below 2.95%. All this is pretty exciting news heading into the busiest real estate market of the year!

The Fed meeting just last week resulted in no interest rate hike, and it doesn't look like they'll be any on the table over the next few months.  The board discussed their ongoing concerns about a weak GDP.  During the first quarter of 2016, GDP measured only one-half of 1%.  It appears more people are making more money, but they're not spending it and that's slowing growth.  And with no measurable inflation, that's further reason to take rate increases off the table for now.

The monthly jobs report is due out in just a few days, so we'll soon know if there's anything more for the Fed to consider.

Till next month,

Michael Dagner

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