Interest Rate Update

The recent government shutdown saw the 30 year fixed mortgage rate slide from an average of 4.28% for the week ending October 18, to 4.13% for the week ending October 25. I would expect this average rate to inch back up in the wake of the shutdown resolution.

Given a number of factors, including the current trend in consumer confidence levels and the Federal Reserve Board's previously announced intention to not alter it's bond buying strategy, I see a built in ceiling of 4.50% on the average 30 year fixed mortgage rate. These conditions should remain constant through at least the Second Quarter of 2014.

Mark Ceretto

Mark Ceretto

Licensed Real Estate Salesperson
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