One person’s loss is another one’s gain.
That’s the takeaway for mortgage rate investors this week, who get to step on the backs of frustrated bank certificate of deposit investors to grab lower interest rates this week.
As measured by BankingMyWay’s Weekly Mortgage Rate Tracker, interest rates, with the exception of one-year and three-year adjustable-rate mortgages, were lower right down the line last week.
Fifteen-year fixed-rate mortgages were down to 4.69% from 4.76%, while 30-year fixed-rate mortgages fell to 5.25% from 5.31%.
While those one-year ARMs rose to 4.51% from 3.91%, three-year ARMs only inched northward to 4.63% from 4.62%. Five-year ARMs fell to 4.54% from 4.58% for the week.
While mortgage customers can expect a bump-up in rates in March, when the Federal Reserve ends its $1.25 trillion mortgage-backed securities buying spree, for now the run-up to higher rates is over.
Economists point to a lousier-than-expected jobs number last week, as the U.S. labor market shed 85,000 jobs, when most economic experts felt the economy would lose only a few thousands jobs. That put the spotlight on the so-called Great Recession, which the stock market, the latest gross domestic product numbers and our political leaders in Washington told us was over.
Well maybe not, or at least don’t tell small business owners and out-of-work Americans that things are getting better. The former isn’t hiring and the latter isn’t getting hired, and that bleak-looking picture frames the mortgage rate environment this week.