Before we go on and analyze what’s going to be happening with mortgage rates this week, let’s first look at what happened last week. It seems as if mortgage rates are definitely dropping to historic lows, giving the lowest rates in the history of 50 years. As compared to last week’s low rate of 4.46% for the national average of 30-year fixed mortgages, this week’s national average dips even lower with a whopping 4.15% national average. Chances are, with an average like that, home buyers, refinancers and real estate investors are likely to find banks and other lenders who have rates at the upper 3% range.
The reason for a turbulent market last week is attached to renewed fears of debt contagion in Europe, as well as the possibility for the U.S. Economy to enter into a double dip recession. This week however, there are a couple of things to look forward to that can influence the market greatly. On Tuesday comes the new home sales for July, Wednesday is the Durable Goods Report, and Friday is the 2nd Quarter GDP and Fresh Consumer Sentiment Reports. Despite the historic low rates last week, analysts say that the rates did not fall as far as they were expected to, meaning, there is still room for the rates to go down. This week’s prediction is that the rates will see more low periods, and mortgage rates could still drop further to make new historic records.
Although a plummeting economy is generally bad for most, this could also mean a good time to buy for real estate investors and perhaps home buyers who are in the know. The same holds true for the stock market, and despite the volatility, veteran investors might be pressing on with their buying spree. Again, for those thinking about purchasing a new home or refinancing an old one, now would be the best time to act.