Fixed mortgage rates have dipped for the second week straight as Treasury bond yields fall again. The Orlando area real estate market is finding that its housing inventory low pricing is being met with great finance opportunities for those that are ready to invest in a Central Florida housing. The market is seeing some of the lowest prices in terms of inflation adjust dollars.
Freddie Mac stated the average rate on the 30-year mortgage dropped to 4.71 percent this week from 4.77 percent the previous week. It hit a 40-year low of 4.17 percent in November.
The average rate on the 15-year loan dropped to 4.08 percent from 4.13 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991.
Treasury yields dropped after the December employment report came in weaker than expected. That drove real estate investors to buy safer Treasury bonds, driving up market yields and lowering the returns expected in mortgage rates. Mortgage rates tend to track the yield on the 10-year Treasury note.
The recent dip in rates has persuaded some borrowers to refinance, with the number of homeowners looking to refinance rising in the last few weeks. With all this news the Central Florida real estate market is showing signs of life in the number of loans still being made and in a slightly more stabilized market.