Mortgage rates fell below 5% this week.
Mortgage rates have been on a decline for the past 3 weeks. According to the Florida Association of Realtors the average rate on a 30 year fixed mortgage was 4.99%. The mortgage rates on a 15 year mortgage fell to 4.4%. In an effort to stimulate the housing market and to reduce cost to borrowers the Federal Reserve is pumping $1.25M into mortgage backed securities. The Federal Reserve is trying to bring down mortgage rates. Growing concerns about the economy resulted in interest rates falling in the bond market.
Mortgage rates are not quite as low as last month’s record low at 4.71% for a 30 year fixed rate mortgage, however half of the experts predict no changes in the rates for the next month and a half. Realtors and borrowers are hopeful the rates will remain low. This is great news for borrowers looking to purchase Sarasota Real Estate.