Here's What's Driving Mortgage Rates Down
Mortgage rates, despite slight fluctuations, have stayed low for many months, an unexpected trend given the slowly but steadily improving economy. So what gives? The Urban Institute broke it down in a post on Thursday.
The think tank’s explanation looks at five major reasons why rates haven’t risen as predicted. The whole post is worth a look, but here’s a quick summary for the five reasons:
- The Institute suggests that a slowly growing and unsteady overseas economy is making the U.S. an attractive option for parking lots of money, meaning Treasury debts are sinking. Mortgage rates stay low as a result.
- Lots of oil market movement. This, the think tank argues, keeps uncertainty high. That contributes to the same phenomenon: people parking money in the U.S.
- A steadily improving U.S. economy means “the uncertainty premium that is normally reflected in higher interest rates for longer term debt is small, and reduced from a year ago.” Eventually, though, this will push rates up, which is why so many have predicted rates will start rising soon.
- Low treasury rates. These rates basically set mortgage rates. When they’re low, so are mortgage rates. And right now, they’re really low.
- A low number of mortgages. Getting a mortgage is still relatively difficult thanks to high credit standards, the think tank points out. Relatively low demand keeps interest rates enticing for buyers.
See other articles related to: mortgage rates, urban institute
This article originally published at https://dc.urbanturf.com/articles/blog/urban_institute_heres_whats_driving_mortgage_rates/9533.
Most Popular... This Week • Last 30 Days • Ever
A Cathedral Heights condominium—located on Cathedral Avenue—with outstanding buil... read »
In this article, UrbanTurf will explain what special assessments are, how they work, ... read »
Plans are moving forward at the site of a long-planned project in Ivy City, however w... read »
Nearly 1,400 residential units are on the boards around Union Market, about the same ... read »
Up 8% year-over-year, it is the first time that prices have exceeded $800,000 for det... read »
- Two Bedrooms with Two Balconies on the Market in Amenity-Packed Cathedral Heights Condominium
- What Are Special Assessments in Condo Buildings and What Do They Cover?
- Douglas Development Pitches Large Warehouse For New City Site Along New York Avenue
- Hotels, A Public Park and The 1,400 Units In The Works For Union Market
- The Price For A House in The DC Area Hit A New High in April
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro