How Low Do Mortgage Rates Go?

30 year at 4.19% with 15 year at 3.62%

As attractive as rates have become over the last 3 months, home purchasing has not followed. We can blame this on the average buyer being flushed out of the market with all the tightening around lending conditions.

The Refinance Market has seen a great spike in activity and why not. In some cases depending on current loan amounts and current rates, someone who refis from a 6% loan to a 4% loan could save anywhere from $200 - $1000 a month.

The demand on treasury bonds lowers their yields and mortgage rates tend to track those yields. So with Investors putting money into these bonds since the spring, mortgage rates have followed.

At the beginning of April, 30 year rates were at 5.08% with 15 year at 4.39%. That means a $400,000 loan is now roughly $350 less a month than it was 6 months ago.

This could make the difference between not being able to buy then, and being able to get into that same property now.

How low will rates go? 4%? 3.75%? 3.50%
We may get there, but nothing is guaranteed.

So if you can buy the same house for $350 less a month now than you could have in the Spring, now is the time to make your move.