Mortgage rates fell this week to 4.19%, a level not seen in this country since the 1950’s. Many investors are buying up treasury bonds in anticipation that the Federal Reserve will make some moves to lower mortgage rates and yields on corporate debt. The result is that current mortgage rates have been pushed down by the Treasury yields.
What does this mean for home buyers? Well it is definitely good news for qualified buyers that will be getting a mortgage. 15 year fixed rates are down to an incredible level of 3.62%. Experts predict that the historically low mortgage rates should help to boost the struggling housing market.
The Economy’s Effect on Housing
Regardless of how low mortgage rates fall, the economy needs to start creating jobs in order to really get the housing market going. The Obama Administration and Congress made a big mistake by not setting the Income Tax rates before their recess. Many home buyers are unwilling to make any large decisions when they still do not know what their tax obligations will be next year. We are working with numerous buyers right now who have put their plans on hold until they get more answers on tax rates. Failure by the Obama administration to act on Income Taxes only added more uncertainty into the struggling economy. If they want to restore confidence in the economy, the first thing they need to do is restore certainty. Many small businesses and home buyers are on hold right now because of the policies of this Administration.