Interest Rates Dip Below 4 Percent

Mortgage rates hit their lowest in 18 months. Now is the time to buy!

Who knew? Recent positive economic forecasts have had a positive effect on the real estate industry. Considering it was just a little over a year ago that some financial analysts predicted Mortgage interest rates once again on the declineinterest rates over 5%, it’s amazing to see that, as of October 15th, mortgage rates dropped BELOW 4  percent.

So how did this happen, when rates were expected to climb?

If you go back a year and a half or so to early 2013, we saw interest rates dip to historic lows (Nearly to the mid 3% range). Now, rates have been helped along since November 2008 by federal stimulus package known as Quantitative Easing, which pumped $85 billion per month into the Mortgage-Backed Securities market. This of course gave confidence to investors, which helped the Federal Reserve maintain (and even reduce) loan rates.

In the spring of 2013, the Federal Reserve hinted that they may begin tapering off the amount of monthly stimulus, which caused panic among some investors, who began selling off their Mortgage-Backed Securities. This initiated a brief chain reaction, which forced rates to rise to over 4%, where they have been holding for a little over a year.

In 2014, the Federal Reserve began reducing their stimulus, which is now down to $25 billion per month (Saving taxpayers over a half trillion dollars per year). During this time, interest rates held in the very low 4% range. In the past few weeks, the Fed announced no new changes in rates based on positive economic news in the job and investment markets. In other words, they wouldn’t want to “rock the boat” during what’s becoming an exponential positive economic growth spurt.

The time to lock in your rate is NOW!

If you’re considering buying a home, you shouldn’t hesitate to increase your buying power by acting NOW to lock in your mortgage rate. It’s still early enough to get you into a home by the holidays. Team Avalos is here to answer all of your questions, and find you the home of your dreams. Contact us today to find out how we can help you reach all of your real estate goals.

Team Avalos Real Estate
Keller Williams VIP Properties
25124 Springfield Court, Suite 100
Valencia, CA 91355

Office: (661) 290-3743
Carlos direct: (818) 399-4093
Rose direct: (818) 590-2077

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