New Post-Crisis Peak for Existing Home Sales; Rates Hit 3 Month Lows; Lurking Housing Bubble?
Mortgage rates continued lower today, bringing most lenders to their best levels in more than 3 months. The average conventional 30yr fixed rate for top tier scenarios is now edging closer to 3.875%, though 4.0% is nearly as prevalent. By a small margin, today's rates are the lowest since late May. Some borrowers will see the improvement in the form of slightly lower closing costs for the same rates quoted yesterday. Over the past two days, many scenarios will now be looking at an eighth of a point lower in rates. So what gives? Isn't the Fed supposed to raise rates soon and aren't rates just supposed to get higher in 2015? Yes and no. While it's true that the consensus in the media is for higher rates in 2015, markets have a funny way of punishing viewpoints that are out of balance. The higher
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