We should see a resurgence in buyer interest now that rates are under 4%. They probably won’t pay a lot more, but if sellers can live with the same price as the last comp, they should be able to sell.
Mortgage rates continued living the dream today, falling decisively past last week’s lows to claim another instance of “best rates since June 2013.” Today’s move was exceptional compared to last week’s (or just about any other move lower of 2014 for that matter). After heading into the weekend in relatively conservative territory, the bond markets that underlie mortgages were greeted with massive movement in broader financial markets over the 3-day weekend.
Some of that movement took place late on Friday–too late for rate sheets to experience much benefit–but most of it occurred in global bond markets during Asian and European trading overnight.
Motivation varies depending who you ask, but the concept of “global growth concerns” is the common thread running through most of the reasons offered for the drop in rates.
Last week’s best moments saw the most prevalently-quoted conforming 30yr fixed rates hover between 4.0 and 4.125% for top tier borrowers. Today’s rates all but eliminated 4.125% from that list. In fact, 3.875% would now be more common than 4.125% (assuming a flawless loan file, 75% or lower Loan-to-Value, and a competitive lender). Rates haven’t been any lower since the first half of June 2013.