Mortgage rates have fallen to the lowest level of the year as investors poured money into the safe haven of U.S. government securities.
The average rate on a 30-year fixed rate mortgage dipped to 4.78 percent this week from 4.84 percent a week earlier, mortgage company Freddie Mac said Thursday. It was the lowest level since early December, when rates fell to a record low of 4.71 percent.
Concerns over the European debt crisis have sent yields for 10-year and 30-year Treasury bonds to their lowest levels of 2010. Rates on 30-year home loans often rise and fall in line with the 10-year note.
But it’s not expected to last. If Europe’s woes subside and the U.S. economic recovery stays on track, rates are likely to move higher. That’s because traders will move their money back into riskier investments.
“Strike now,” said Greg McBride, senior financial analyst at Bankrate.com. “If they move quickly against you, it just takes money right out of your pocket.”
Seminars
A seminar for first-time homebuyers following the curriculum of the state Housing Finance Commission will be offered from 10 a.m. until 3:30 p.m. June 19 at the Woodlands Technology Building, 1909 214th St. SE Unit 205, Bothell. The ReMax Bothell office is host. Attendees will receive a commission certificate of completion.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.
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