Coming down from a seven-month high of 5.59 percent a week ago, rates on 30-year fixed home loans lowered to 5.38 percent last week. Freddie Mac reports that interest on 15-year fixed mortgages was lower as well, slipping to 4.89 percent from 5.06 percent over the same period. An upward trend in borrowing costs over the past three weeks was linked to rising yields on long-term government debt, sparked by investor concerns over inflation. According to Freddie Mac, however, new data suggest that inflation might be under control.
The financial markets seem to be moving very sideways at the moment, making it very hard to accurately predict where Nashville mortgage rates are heading over the next few weeks. My gut is telling me not to expect any wild swings either way. That being said, rates are still very attractive and lenders are becoming more flexible on primary residence purchases. It could be a good time to look at some excellent foreclosure opportunities in the Nashville area.