Placed in Market Update
Last week we experienced a significant drop in mortgage rates. As of April 13, the overall average rate for 30-year fixed-rate mortgages was 4.18% (a decrease of .12 percent from the previous report). The 15-year fixed-rate dropped to an average 3.42%. FHA-backed 30-year mortgages decreased to 3.82% and the overall average for 5/1 Hybrid ARMs was 2.99%.
Of course, it’s wise to anticipate and prepare for an inevitable upward movement, however slight that might be.
In its recent survey of regional conditions, the Federal Reserve noted that we are in the midst of “modest to moderate” economic expansion. General indications emphasize that the economy is in a somewhat more solid position than during the last two years. Of course, many professional and amateur economists are cautious about forecasting the near future prospects, citing a recent dip in home builder confidence as one key area to consider. Watch for more long-term projections in upcoming GS Market Updates.