During the week of July 11, 2019, the home loan rates remained close to their lowest
point in 2 years, despite an admittedly choppy economic landscape during the same time period;
this bodes well for potential home buyers.
During this time frame, the 30-year fixed-rate mortgage (“FRM”) remained at 3.75%; to
put things in perspective the 30-year FRM has increased 8 times in roughly 26 weeks, while in
the other weeks the 30-year FRM either remained at its previous rate or decreased (this kind of
stability is good for investment-oriented people). The 15-year FRM increased to 3.22%, and the
5-year treasury-indexed hybrid adjustable rate mortgage (“ARM”) increased by .01% to 3.46%.
As you can see, the rates have reached a point of stability.
As usual, bond yields continued to have an inverse relationship with home loan rates. At
the Chernov Team we understand that knowledge is power, and knowledge of how the market is
behaving is powerful knowledge indeed. With the rates staying so low, and the fact that more
decreases to the interest rates are on the horizon, the market is shaping up for a favorable
landscape for potential home buyers. At the Chernov Team we know that whoever comes to the
table most prepared leaves with the most, and the Chernov Team always leaves the table with the
most.