Real estate analysts have been predicting a strong year for the real estate industry in 2016, including the Coral Springs homes for sale market. But with 2016 underway, mortgage rates haven’t started edging up. In fact, as of the completion of the first full week in 2016, the rate on mortgages did just the opposite of the expected climb. They’ve dropped!
According to the latest numbers from Freddie Mac, fixed mortgage rates on 30 year fixed loans fell below 4 percent as the new year began. Chief Economist Sean Becketti with Freddie Mac attributed the plummet to economic developments happening overseas that have concerned many here in the states.
Asian Markets Affect Mortgages Rates on Coral Springs Homes for Sale
It may seem hard to believe, but the global economy most definitely affects the national and local real estate markets, like Coral Springs homes for sale.
Although predictions placed the Coral Springs homes for sale real estate market as one that would see increases in mortgage rates as the new year began, it hasn’t gone as predicted – so far.
The start of 2016 demonstrated a drop in the Asian stock market due to a slump in the manufacturing data sector in China. As the second largest economy, China definitely is watched closely and any indication of a slowdown in that nation’s financial market warrants attention.
With a 6.9 percent plunge in China’s Shanghai Composite Index at the start of the first full week in January, financial markets across the world took notice.
The drop that hit China on January 4th was so significant – it brought that Asian market’s index to its lowest levels in three months – Chinese officials decided to stop all trading on the Shanghai Composite Index that day to prevent the declines from falling any farther.
This dramatic drop definitely got noticed by the financial markets worldwide, including Wall Street, which saw the yield on U.S. Treasury bonds drop in response. In turn, mortgage rates fell affecting real estate markets across the country. This included Coral Springs homes for sale where 30-year mortgage rates felt this reported dip.
Coral Springs Homes for Sale Should Feel Mortgage Rate Drop
Fixed Rate Mortgages on Coral Springs Homes for Sale
As of the last reports, national averages on fixed rate mortgages for Coral Springs homes for sale and other properties around the country came in as follows:
15 year: As of January 7, 2016, the fixed rate mortgage for a 15 year loan averaged 3.26 percent, with an average 0.5 point. This is up from a year ago which listed rates for a 15 year mortgage at 3.05 percent on average.
30 year: As of January 7, 2016, the fixed rate mortgage for a 30 year loan averaged 3.97 percent, with an average 0.6 point. This is a drop from the last week in December which had numbers at 4.01 percent on average. The number is up from last year at this same time which came in at 3.73 percent.
Hybrid mortgages for Coral Springs Homes for Sale
As of the last reports, national averages on hybrid mortgages for Coral Springs homes for sale and other properties around the country came in as follows:
5 year: For the first full week of January, the adjustable rate mortgage (ARM) came in at an average of 3.09 percent. According to Freddie Mac the average point was 0.5 point, which was up from the last week in December which logged 3.08 percent average.
All these rates were reported by Freddie Mac for the week ending January 7th.
For home buyers interested in buying Coral Springs homes for sale, this may be the opportune time to try and secure these mortgages rates. Analysts says this is particularly true since, as the year goes on, rates still are expected to climb.
