VA rates fell yet again and for two weeks in a row, the average 30 year rate for mortgages was 3.92% as of last Thursday, according to Freddie Mac’s weekly survey. At the same time, some economists are pointing out that both European and Asian economies are showing further signs of weakness, strengthening the dollar.
Technically, that makes our products more expensive to buy, (think oil exports) while their economies are running on the slow side. That can slow things down here on this side of the pond as well. In a nutshell, we might be seeing 30 year VA rates below 4.00% for the remainder of the year. This isn’t a prediction as much as it is repeating what the pundits are prognosticating.
That sort of makes sense because 30 year rates on the whole have been below 4.20% since early May and as the Fed opens and closes its two day meetings this week they’ll also put an end to the QEIII program which has helped keep rates low for such an extended period of time.
It may not seem like it to some, but our economy is on the move, although still a bit punch drunk. Rates may indeed be low for an extended period. If you’re buying soon or thinking about it, you may have a little breathing room. Maybe.