Archive for Low interest rates Phoenix


Recently, we have had several of our homebuyers buy much more house than they originally thought that they could due to the exceptionally low interest rates. Honestly, I have never seen these rates this low for so long.

Long-term interest rates hit an all-time record low for the seventh straight week, falling to 4.49 percent, excluding points, according to mortgage giant Freddie Mac Thursday.

Here’s why rates are so low still:
The gross domestic product (GDP) for the second quarter of 2010 grew at a rate of 2.4 percent, slightly lower than predicted and Freddie Mac is saying that looking back, GDP has grown much slower than we previously thought during the past few years. Slow economic growth means minimal inflation.

From Marketwatch
“There is a strong relationship of bond prices to inflation risk,” Cameron Findlay, chief economist of LendingTree.com, said in a news release. “Generally as the risk to inflation grows, bond prices move lower, leading mortgage rates to increase. Recently, there has been a very low risk of inflation, forcing bond prices higher and mortgage rates to move lower.
“With price growth slower than expected, borrowers can expect mortgage rates to remain low,” he said.

Lender rate sheets this morning are improved when compared to last weeks. The par 30 year conventional rate mortgage remains in the 4.25% to 4.50% range for well qualified consumers. To be considered well qualified you must have a FICO credit score of 740 or higher. For consumers with lower FICO scores, you should consider a FHA loan which offers similar rates but with higher closing costs.

Current Mortgage Rates

PRODUCT 30 Year Fixed

RATE 4.59 %
APR 4.75 %
CHANGE 0.00 %

15 Year Fixed

RATE 4.06 %
APR 4.23 %
CHANGE 0.00%

5/1 ARM
RATE 3.69%
APR 3.47%
CHANGE 0.00%

10/1 ARM
RATE 4.38%
APR 4.00%
CHANGE 0.000%

If you have any questions regarding this post or any other post, please do not hesitate to contact us at Info@MetroRealtyphx.com or 602. 687.9933.

Rates fluctuate on a daily basis, please check with your lender for any lender information or questions.

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