{"id":3498,"date":"2017-04-17T00:00:00","date_gmt":"2017-04-17T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/why-mortgage-rates-are-dropping\/"},"modified":"2017-04-17T00:00:00","modified_gmt":"2017-04-17T00:00:00","slug":"why-mortgage-rates-are-dropping","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/why-mortgage-rates-are-dropping\/","title":{"rendered":"Why Mortgage Rates Are Dropping"},"content":{"rendered":"

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After the Federal Reserve raised its key interest rate about a month ago, mortgage<\/a> rates were expected to increase as well. Instead, they’ve been dropping in recent weeks. The 30-year fixed-rate mortgage averaged 4.08 percent last week, its lowest point so far in 2017 and its fourth consecutive week for declines, Freddie Mac reported.<\/p>\n

When the Fed raises its federal funds<\/a> rate, it becomes pricier for banks to borrow money<\/a>, which generally leads to higher borrowing rates for consumers. Mortgage rates, on the other hand, tend to coincide more with the 10-year Treasury note. Lately, investors have been buying them up, and the higher demand has been sending mortgage rates lower, CNNMoney reports. The 10-year Treasury yield is about 2.23 percent; a month ago, it was about 2.62 percent. Mortgage rates have moved lower as the 10-year Treasury has inched lower.<\/p>\n

“We will probably see rates higher at the end of the year\u2014around 4.5 percent,” says Len Kiefer, Freddie Mac’s deputy chief economist. The lower mortgage rates may have come as a welcome surprise to home shoppers this spring, particularly as many markets’ inventory woes are pressing home prices higher overall.<\/p>\n

“We know that with every move higher with mortgage rates, it adds to the cost, but that is only going to limit purchases on the margin,” Mark Hamrick, senior economic analyst at Bankrate.com, told CNNMoney.<\/p>\n

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Source: \u201cThe Fed Raised Interest Rates. Why Are Mortgages Getting Cheaper?\u201d CNNMoney (April 14, 2017)<\/em><\/p>\n<\/div>\n<\/div>\n

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After the Federal Reserve raised its key interest rate about a month ago, mortgage rates were … Why Mortgage Rates Are Dropping<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":3499,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[1403,15239,12908,543,9488,408,1295,41,818],"class_list":["post-3498","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-buy","tag-chase","tag-home","tag-home-buying-guide","tag-interest-rates","tag-mortgage","tag-mortgage-rate","tag-property","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/04\/rates041317.png?fit=600%2C244&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":7698,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-ring-in-new-year-with-a-dip\/","url_meta":{"origin":3498,"position":0},"title":"Mortgage Rates Ring in New Year With a Dip","author":"Amazing Property","date":"January 5, 2018","format":false,"excerpt":"Borrowers kicked off 2018 with a mortgage rate drop.\u00a0 The 30-year fixed-rate mortgage is now down a quarter of a percentage point from a year ago. \u201cTreasury yields fell from a week ago, helping to drive mortgage rates down to start the year,\u201d says Len Kiefer, Freddie Mac\u2019s deputy chief\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Rates010518.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/rates010518.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/rates010518.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/01\/rates010518.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":7055,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-take-slight-dip-this-week\/","url_meta":{"origin":3498,"position":1},"title":"Mortgage Rates Take Slight Dip This Week","author":"Amazing Property","date":"November 10, 2017","format":false,"excerpt":"Mortgage rates were down across the board this week, lowering borrowing costs for potential home buyers and refinancers. \u201cAfter holding steady last week, rates dipped slightly this week,\u201d says Sean Becketti, Freddie Mac\u2019s chief economist. \u201cThe 10-year Treasury yield fell roughly 7 basis points, while the 30-year mortgage rate dropped\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Rates111017.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/rates111017.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/rates111017.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/11\/rates111017.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":5406,"url":"https:\/\/amazingproperty.com.ng\/blog\/after-brief-hike-mortgage-rates-fall-below-4\/","url_meta":{"origin":3498,"position":2},"title":"After Brief Hike, Mortgage Rates Fall Below 4%","author":"Amazing Property","date":"July 21, 2017","format":false,"excerpt":"Following two weeks of rate increases, the 30-year fixed-rate mortgage settled back below a 4 percent average this week.\u00a0 \u201cContinued economic uncertainty and weak inflation data pushed rates lower this week,\u201d says Sean Becketti, Freddie Mac\u2019s chief economist.\u00a0\u201cThe 10-year Treasury yield fell 5 basis points this week. The 30-year mortgage\u2026","rel":"","context":"In "Property buyer"","block_context":{"text":"Property buyer","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/property-buyer\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/rates072117R.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/rates072117R.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/rates072117R.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":4891,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-are-still-dropping\/","url_meta":{"origin":3498,"position":3},"title":"Mortgage Rates Are Still Dropping","author":"Amazing Property","date":"June 8, 2017","format":false,"excerpt":"[ad_1] Home buyers may want to rush to lock in: The 30-year mortgage rate hit its lowest level in nearly seven months this week, Freddie Mac reports. \"The 10-year Treasury yield fell 3 basis points this week,\u201d said Sean Becketti, Freddie Mac\u2019s chief economist. \u201cThe 30-year mortgage rate moved in\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060817.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060817.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060817.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2438,"url":"https:\/\/amazingproperty.com.ng\/blog\/mortgage-rates-retreat-slightly-this-week\/","url_meta":{"origin":3498,"position":4},"title":"Mortgage Rates Retreat Slightly This Week","author":"Amazing Property","date":"March 24, 2017","format":false,"excerpt":"The 30-year fixed-rate mortgage decreased slightly, following two months of steady rises. \"The 10-year Treasury yield fell about 10 basis points this week,\u201d says Sean Becketti, Freddie Mac\u2019s chief economist. \u201cThe 30-year mortgage rate moved with Treasury yields and dropped 7 basis points to 4.23 percent. This marks the greatest\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4809,"url":"https:\/\/amazingproperty.com.ng\/blog\/a-new-2017-low-struck-with-mortgage-rates\/","url_meta":{"origin":3498,"position":5},"title":"A New 2017 Low Struck with Mortgage Rates","author":"Amazing Property","date":"June 2, 2017","format":false,"excerpt":"[ad_1] The 30-year fixed-rate mortgage moved lower for the third consecutive week and set a new low for the year, Freddie Mac reports. \"In a short week following Memorial Day, the 10-year Treasury yield fell 4 basis points,\u201d says Sean Becketti, Freddie Mac\u2019s chief economist. \u201cThe 30-year mortgage rate remained\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060117.png?fit=620%2C252&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060117.png?fit=620%2C252&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/06\/rates060117.png?fit=620%2C252&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=3498"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/3498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/3499"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=3498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=3498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=3498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}