Sep 29, 2014

September 2014 Mortgage Interest Rates

- originally posted September 1, 2014 -

Mortgage rates dropped during August, and they continue to push lower heading into September. The FHA 30-year rate is currently 3.75%.

Geo-political events are putting fear into the financial markets, like what's happening in Russia, the Middle East, and more recently in the UK, with their increased terror levels. This wreaks havoc on the markets, because these type of events tend to destabilize economies. The markets react by selecting safe havens for their investments, such as bonds. When money flows stocks into bonds, bond prices increase and mortgage interest rates drop.

Combine these current political tensions with the Fed's recent policy position that they "will not raise rates for some time." It appears, interest rates have nowhere to go but down. That said, if inflation mounts, the Fed will have little choice to to begin raising rates to control inflation.

Enjoy these low rates while you can, but remember that interest rates are under increasing pressure to rise. When the current political and fear-based issues subside, interest rates will change quickly. Investors will be looking to make-up lost ground. Watch the markets closely, don't gamble, and lock your rate to be safe!

See "today's rates", below.  Till Next Month,

Michael Dagner

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