Freddie Mac reports a drop in the 30-year fixed mortgage rate to 4.82 percent during the week ended May 21 from 4.86 percent the prior week, while the 15-year fixed mortgage rate dipped to 4.5 percent. The Federal Reserve is working to hold down rates by purchasing upwards of $1.25 trillion in mortgage-backed securities and $300 billion in Treasuries. Mortgage rate premiums have declined substantially over the last couple of months even as Treasury yields climbed. Nashville mortgage rates continue their historic fall, but if history is any lesson, there is a bottom and it will be reached.
We recommend that if you are considering refinancing your home loan, now is the time to lock in your mortgage rates. I have personally locked in 10 of my investment properties and am considering locking in all 18 at today’s rate. I realize that most of us are optimistic by nature, but I simply cannot see these mortgage rates getting too much better in this economy and the treasury is running out of rabbits in their hat.
BTW – I am starting to see some really good deals from developer owned condos in downtown. I would take a very hard look at The Encore and The Icon.