Mortgage rates have fallen unexpectedly below 5 percent again. Will that drive you back into the housing or refi market?
The Wall Street Journal is reporting that the financial turmoil in Europe has caused many international investors to seek a safe haven for their money in the U.S. That has pushed domestic mortgage rates to the lowest levels of the year — and back near 50-year lows, the WSJ reports.
The housing industry had been bracing for a period of rising mortgage rates, triggered by the end of the Federal Reserve’s $1.25 trillion mortgage-securities purchase program.
Instead, the WSJ writes, many in the industry now say rates could drift as low as 4.5 percent this summer from 4.86 percent now, instead of rising to 6 percent as some economists projected. That makes for significantly lower payments for buying homes or refinancing mortgages.
The refinance business “exploded” last week, Jeff Lazerson, chief executive of Mortgage Grader of California, told the WSJ.
Will it explode here? Will the low rates get your attention, whether to refi or buy?
For instant updates, follow me on Twitter.