Mortgage rates are staying low for now - if you had asked me about rates 3 months ago and said that you wanted a 30 yr fixed rate at 4%, I might have laughed! However, rates have been hovering around 4% for conventional loans and even as low as 3.75% for FHA loans. All of this depends on your credit score, loan amount, type of loan, etc, but it is possible!!!
How long they will stay this low is something none of us really know. Everyday there are different things that affect the mortgage market. Last week we were concerned about the possible new jobs bill that President Obama is proposing causing interest rates to increase. However the day after his speech, the bigger concern was the European economy and rates stayed low.
This week the August retail sales numbers were released and they were the same as the month before. Consumer spending accounts for about two thirds of all US economic activity. Right now, most consumers are watching what they are spending and only purchasing necessities. For many analysts, this creates a question on whether or not the country can steer clear of a double dip recession. August employment numbers also showed that the economy created no new jobs for the month - that really wasn't expected and helped keep interest rates down.
All of the reports - from new job numbers to retail sales to inflation numbers - affect interest rates. Economic concerns around the world also can affect our interest rates. How long interest rates will stay low is something no one really knows. Right now the Federal Reserve wants to keep interest rates low for an extended period of time which will allow mortgage rates to stay low, but probably not this low!
