What Are the Best Mortgage Interest Rates in Market Today?

/ 12:36 AM January 12, 2019

In uncertain times like these, our attention often goes to what we perceive to be our most vulnerable place: our homes and what could be the best mortgage interest rates. With a rapidly fluctuating market that now appears to be in freefall, one would not be remiss for worrying about what will happen to their livelihoods – let alone their homes. And yet, interesting things are occurring with both mortgage rates and their kissing cousins: mortgage interest rates.

The good news is there’s no reason to worry. In fact, we squarely place ourselves in the “remaining utterly optimistic” camp. For while these times are filled with fear, uncertainty, and doubt for many, there are far more reasons to seize this moment of downturn and profit from it – rather than let ourselves be cast down into pits of depression.

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According to data put together by the mortgage loan company Freddie Mac, the fixed-rate average for 30-year mortgage loans dropped to 4.51 percent. Additionally, the 30-year fixed rate has dropped down 43 basis points (one point is 0.01 percentage). The slowing global economic growth and subsequent slowing of the housing market should get anyone who is on the lookout for the home of their dreams primed toward making a purchase.

As with all financial and investment decisions, we can’t outright claim that right now is the best time to buy at all. Although a stagnating global economy has exerted its influence in the housing market to the joy of many would-be-buyers, the low mortgage rates and mortgage interest rates still may not be enough for those who have seen their wages stagnate in line with the economy – let alone those who have stagnant wages and variable mortgage rates. And still, there is hope!

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Although wages have declined, the absolute crushing blows that the stock market sustained over the last several months have forced investors to move their investments into low-risk assets such as bonds and mortgage-backed securities (MBS). What does this mean for mortgage rates? Everything! Mortgage rates are based off mortgage-backed securities (hence the name). As such, the more money that flows into these assets, the lower that rates fall.

There are many reasons for a shifting market. The relevance of goods and services ebbs and flows as time crawls by, yet real estate will always remain relevant: people will always need a place to live, and a place to call home. But, what does all this information that we’re throwing at you truly mean? Well, we hope you’re strapped in nice and tight, because we’re going to give it to you straight: rates will continue to drop.

With the market in an economic downturn – and some sectors like oil in an absolute death spiral – the outlook for 2019 is shaping up to be one of decaying frameworks and slowed growth. Just look at the Fed’s actions. In December, the Fed raised rates – but then quickly pulled back for 2019 and projected a rate hike of only two times as opposed to the estimated three. Add up the fact that the DOW had its worst-ever day of losses in December of 2018 and it’s no wonder that a lot of investors are turning bearish with their forecasts.

At the expense of sounding like a broken record, all of these markers point to one thing: it’s time to ready the pocketbook and start hunting. With rates slipping to their lowest in quite some time, the window for action is beginning to narrow. And with every fall comes the inevitable economic snap-back that follows a bull market. The writing is on the wall: make your move before the market catches you out and rates begin to rise once more.

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