Freddie Mac Weekly Updates
The 30-year fixed-rate mortgage (FRM) averaged 6.24 percent unchanged from last week when it averaged 6.24 percent as well. Last year at this time, the 30-year FRM averaged 6.24 percent. Note: The 30 year rate has not changed since last year.
The 15-year FRM this week averaged 5.88 percent . A year ago, the 15-year FRM averaged 5.94 percent. Note: The shorter term 15 year rate is lower by 6 basis points year over year.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week. A year ago, the 5-year ARM averaged 6.04 percent. Note: The short term variable rate is lower 8 basis points year over year.
The Fed rate reductions are hardly impacting mortgage rates which means to me that they are not interested in bailing our the homeowner. If we cant count on the Fed to stimulate sales and keep homeowners in their homes then where is the market opportunity.
1. Rental Property: The apartment sector is doing well because when people are not buying they will rent. This is soaking up rental supply and boosting cash flow and property value.
2. Foreign Buyers: The dollar keeps dropping relative to other currencies. When interest rates drop, other currencies "pay better" than the dollar. I think that if you are an investor or agent in areas that are of investment interest to foreigners, then there may be opportunity in marketing to investors who see our property as inexpensive vs. their own currency.
Thanks for reading