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Mortgage Rates retreat to lowest level of 2014

Rates are down but is that a good sign?
Rates are down but is that a good sign?
Freddie Mac

Following much jubilation while bringing in the New Year, consumers welcomed more good news as mortgage rates have retreated to their lowest level in 2014. Dropping ten basis points from the previous week, the industry average for the 3rd week in January is 4.410%.

The stock market continues to sizzle based on some companies year-end, and 4th quarter earnings report. Those companies leading the market have done a good job in right sizing their operations and the DOW reflects their success.

On the other hand mortgage rates are driven by different metrics. The paltry employment numbers from December were the prime reason mortgage rates fell.

In addition to employment numbers the M.B.A. (Mortgage Bankers of America) reported an across the board drop in mortgage applications. The news is nothing to be alarmed about due to the cyclical nature of rate movement. Another perspective to consider is while the rates have declined, they have increased a full percentage point from this time last year: 4.410% versus 3.38%.

The trending is great for those currently shopping for a mortgage but for many consumers the mortgage rate axiom is profound; “low rates don’t mean a thing if you can’t qualify or be in a position to afford a mortgage.”

The mortgage rate data is comprised into The Freddie Mac Primary Mortgage Market Survey® which has evolved since its inception in April 1971 into the foremost reliable, representative source of regional and national mortgage rate trends and is relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options.