[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f2yf0qd34x00vq":3,"$fbwk2pqjjqsc7":33},{"item":4,"previous":23,"next":28},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":21,"updatedAt":22},222,"why-have-interest-rates-dropped","Why Have Interest Rates Dropped?","\r\n\r\nThe headlines agree mortgage interest rates have dropped substantially below initial projections. Many who are considering purchasing a home, or moving up to their dream home, might think that they should wait to buy, because rates may continue t...","","blog","https:\u002F\u002F\u002F","\u003Cimg class=\"alignnone size-full wp-image-30017\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2015\u002F01\u002FWhy-Have-Interest-Rates-Dropped.jpg\" alt=\"Why Have Interest Rates Dropped? | Simplifying The Market\" width=\"600\" height=\"315\" \u002F>\r\n\r\nThe headlines agree mortgage interest rates have dropped substantially below initial projections. Many who are considering purchasing a home, or moving up to their dream home, might think that they should wait to buy, because rates may continue to fall.\r\n\r\nA recent \u003Ca href=\"http:\u002F\u002Feconomistsoutlook.blogs.realtor.org\u002F2015\u002F01\u002F12\u002Frecent-oil-price-trends-and-what-it-means-for-the-housing-recovery\u002F\">article\u003C\u002Fa> on the Economists’ Outlook blog by the National Association of REALTORS® (NAR) provides insight into \u003Cstrong>one\u003C\u002Fstrong> major factor in the decline in interest rates, the crude oil price.\r\n\u003Cblockquote>\u003Cem>“As of January 5, 2015, the U.S. Energy Information Administration (EIA) reported that the price of regular gasoline was $2.20\u002Fgallon, the lowest since gas prices peaked to about $ 4\u002Fgallon in May 2011.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nYou may have noticed that filling your gas tank has become substantially less expensive in recent months. A welcome change from the close to $5 a gallon that many Americans were paying this time last year. The average US household is projected to save around $550 in 2015.\r\n\u003Ch4>\u003Cstrong>So what does that have to do with Interest Rates?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nNAR explains the correlation like this:\r\n\u003Cblockquote>\u003Cem>“Lower oil prices mean lower inflation rate, which pushes down mortgage rates.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nBased on Freddie Mac’s weekly \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fpmms\u002Findex.html?intcmp=CWS-HP\">mortgage survey\u003C\u002Fa> as of January 22, 2015, the 30-year fixed rate averaged 3.63% and the 15-year fixed rate averaged 2.93%.\r\n\u003Cblockquote>\u003Cem>“The decline in oil prices is generally positive to households by way of the gas savings and lower mortgage payments. That savings will boost consumer spending in other areas. But there may be some layoffs in oil-producing states.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>How long will rates stay low?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nNo one really knows how long oil prices will continue to support low mortgage rates. In a New York Times \u003Ca href=\"http:\u002F\u002Fwww.nytimes.com\u002F2014\u002F12\u002F28\u002Frealestate\u002Fhow-cheaper-oil-affects-mortgage-rates.html?_r=0\">article\u003C\u002Fa>, the author points to the fact that “\u003Cem>adding hundreds of billions of dollars to consumer spending” \u003C\u002Fem>could start to have a \u003Cem>“counter effect”\u003C\u002Fem> on rates as the economy continues to strengthen.\r\n\u003Cblockquote>\u003Cem>“If firms start hiring again, and wages increase — that’s when the level of all interest rates in the U.S. would increase.”\u003C\u002Fem>\u003Cem> \u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>Don’t wait too long\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThe low interest rates we are currently experiencing are not going to stay around forever. The current projections from Freddie Mac, Fannie Mae, NAR and the Mortgage Bankers Association all agree that \u003Ca href=\"\u002F2015\u002F01\u002F06\u002Fwhere-will-mortgage-rates-be-headed-in-2015\u002F\">interest rates\u003C\u002Fa> will increase to between 4.3-5.4% by the end of 2015.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nNAR reports:\u003Cem> “At the median home price of $205,300, a 0.75 percentage point drop in mortgage rates will yield savings of about $1,000 annually.”\u003C\u002Fem>\r\n\r\nIf you are in a position to buy a home I would love to meet with you and discuss what’s going on in the market. Don’t let a delay in purchasing impact your family’s financial future.","\r\nNAR reports:\u003Cem> “At the median home price of $205,300, a 0.75 percentage point drop in mortgage rates will yield savings of about $1,000 annually.”\u003C\u002Fem>\r\n\r\nIf you are in a position to buy a home I would love to meet with you and discuss what’s going on in the market. Don’t let a delay in purchasing impact your family’s financial future.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2015\u002F01\u002FWhy-Have-Interest-Rates-Dropped.jpg",false,[17],{"id":18,"name":19,"slug":20},35,"Mortgage Rates","mortgage-rates","2015-01-27T10:00:48Z","2015-01-27T11:10:01Z",{"id":24,"slug":25,"title":26,"featuredImage":11,"publishedAt":27,"contentType":10,"isVideo":15},221,"5-reasons-to-hire-a-real-estate-professional-6","5 Reasons to Hire a Real Estate Professional","2015-01-26T10:00:26Z",{"id":29,"slug":30,"title":31,"featuredImage":11,"publishedAt":32,"contentType":10,"isVideo":15},223,"the-two-things-you-dont-need-to-hear-from-your-listing-agent-3","The Two Things You Don’t Need to Hear from Your Listing Agent","2015-01-28T10:00:51Z",[34,38,42,46,50,54,58,62,66,67,71,75,79,83,87,91,95,99,103,107,111,115,119,123,127,131,135,139,143,147],{"id":35,"name":36,"slug":37},1,"Uncategorized","uncategorized",{"id":39,"name":40,"slug":41},5,"For Buyers","buyers",{"id":43,"name":44,"slug":45},6,"For Sellers","sellers",{"id":47,"name":48,"slug":49},7,"Foreclosures","foreclosures",{"id":51,"name":52,"slug":53},8,"Infographics","infographics",{"id":55,"name":56,"slug":57},9,"Home Prices","home-prices",{"id":59,"name":60,"slug":61},11,"First-Time Buyers","first-time-buyers",{"id":63,"name":64,"slug":65},34,"Senior Market","senior-market",{"id":18,"name":19,"slug":20},{"id":68,"name":69,"slug":70},38,"Move-Up","move-up",{"id":72,"name":73,"slug":74},41,"For Sale by Owner","for-sale-by-owner",{"id":76,"name":77,"slug":78},42,"Featured","featured",{"id":80,"name":81,"slug":82},45,"New Construction","new-construction",{"id":84,"name":85,"slug":86},52,"Luxury \u002F Vacation","luxury--vacation",{"id":88,"name":89,"slug":90},53,"Rent vs. Buy","rent-vs-buy",{"id":92,"name":93,"slug":94},80,"Time-sensitive","time-sensitive",{"id":96,"name":97,"slug":98},81,"Outdated","outdated",{"id":100,"name":101,"slug":102},147,"Internal","internal",{"id":104,"name":105,"slug":106},148,"Do Not Autopost","do-not-autopost",{"id":108,"name":109,"slug":110},320,"Inventory","inventory",{"id":112,"name":113,"slug":114},321,"Agent Value","agent-value",{"id":116,"name":117,"slug":118},322,"Affordability","affordability",{"id":120,"name":121,"slug":122},323,"Buying Tips","buying-tips",{"id":124,"name":125,"slug":126},324,"Downsize","downsize",{"id":128,"name":129,"slug":130},325,"Economy","economy",{"id":132,"name":133,"slug":134},326,"Equity","equity",{"id":136,"name":137,"slug":138},327,"Forecasts","forecasts",{"id":140,"name":141,"slug":142},328,"Selling Tips","selling-tips",{"id":144,"name":145,"slug":146},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":148,"name":149,"slug":150},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]