Mortgage Interest Rates Dip Amid Shutdown Fears; Lock In A Lower Rate Now
While mortgage applications have fallen in the last few weeks due to uncertainty surrounding the partial government shutdown, savvy loan shoppers have been swift to take advantage of lower interest rates. Prior to this, mortgage interest rates had been inching upward, due to multiple increases in the benchmark interest rate issued in 2018.
Many speculate that the shutdown has clearly placed pressure on potential homebuyers, particularly those whose breadwinners rely on government paychecks. Combined with a volatile stock market experiencing a downturn and international trade instability, the environment for making the long-term commitment of a mortgage may not seem ideal. However, these factors have created a competitive marketplace that favors the consumer.
Thirty-year fixed-rate mortgages have currently decreased, seeing their lowest levels since September 2018. Average contract interest rates for an FHA 30-year fixed-rate mortgage decreased to 4.55%For 15-year fixed-rate mortgages, the average decreased to 4.05%.
Current low rates clearly make the homebuying process much more affordable. For homebuyers not adversely affected by the shutdown and waiting for a potential dip in interest rates, this may be a beneficial time to lock in a rate.
This situation could change at any moment, and mortgage rates are sure to climb back as loan applicants return to the market once the economy begins to recoup and financial confidence returns for homebuyers. Now’s the time to act.