The economic challenges that Europe has been facing recently has made investors nervousness about the health of the global economy, has created an opportunity for homeowners here in the US. Investors have been fleeing riskier securities and moving to the perceived safety of U.S. Treasury securities. This has created a significant demand for US Treasury securities which has bid up the price of these securities and in turn driven down interest rates to historical lows.
The average rate on a 30-year fixed rate mortgage nationwide dropped to 4.92 percent at the end of May, from 4.96 percent the previous week, the lowest level since Bankrate.com began keeping track 25 years ago.
Rates have been hovering in the 5 percent to 5.5 percent range for some time. They last touched above 6 percent in November 2008, just as the U.S. financial crisis was unfolding.
Refinancing out of risky adjustable loans or lowering existing fixed rate loans is something every homeowner should be looking into right now. There have been many changes to lender underwriting guidelines and we know property values are lower than they were several years ago. Not everyone will be able to take advantage of these lower rates but it costs nothing to at least find out if refinancing is an option so don’t wait until rates start trending back up, make a call today and find out.
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