Will Mortgage Rates Continue to Decline? � The Real Estate Bloggers

Will Mortgage Rates Continue to Decline?

The Federal Reserves decision not to increase the interest rate had a immediate effect on the 30 year mortgage and lowered it 17 basis points in a two week window. If oil prices keep declining we may see a period where inflation is kept under control enough to keep mortgage rates in the 6.50 to 6.75 percent range and provide enough of a foundation for buyers to trust the marketplace.

I think that the price of oil is much more important to the housing market than most people think. It has been a key driver of inflation along with increased salaries. If the psychological pressure of putting gas in ones car is mitigated, then people may be more comfortable with their present pay and situation.

30-YEAR MORTGAGE RATES

Date 30-Year Rate
8/10 6.55%
8/3 6.63%
7/27 6.72%
7/20 6.80%
7/13 6.74%
7/6 6.79%
6/29 6.78%
6/22 6.71%
Source: Freddie Mac