Today stocks are under selling pressure which has helped Mortgage Bonds improve slightly over even last week, driving mortgage interest rates even further down under last week’s incredibly low levels.
Ben Bernanke is talking about the Fed Rate dropping even further from it’s current 1.0% level, but he also warns that doing so may not do much to improve the economy. The rumor on the street is the Fed was talking about dropping it to 0%. I don’t think that will happen, but another 0.50% rate cut is probable.
Black Friday was a great shot in the arm for retailers with over 25,000,000 more shoppers visiting retail stores nationwide than in 2007. Sales were up 7.2%, but much of it is being accredited to deeper discounts than previously seen. But I don’t think the shoppers knew that until they got in the store. So I’m optimistic that it was a show of consumer confidence, if even just a brief one. We’ll see what the rest of the holiday season shapes-up like.
Mortgage Bonds are holding steady if not moving even slightly down down, so I recommend carefully floating and seeing what happens, especially if your closing a mortgage loan in Salt Lake City in the next 30 days. Salt Lake City has had some of the best rates nationwide for the past few weeks.
For Salt Lake City, UT today’s average mortgage rates are as follows:
30-year fixed: 5.250%
15-year fixed: 5.00%
Jumbo 30-year fixed: 5.375%
FHA 30-year fixed: 5.500%