So far we’re four months into 2014 and mortgage interest levels have been fairly stable. In fact, we kicked off January with 30-year fixed sitting at 4.43%. And, despite many housing industry experts forecasting a jump in rates, we’re still hovering right around the 4.48% level. Not exactly the increase many anticipated.
But what factors are responsible for keeping the rates relatively low?
After rates inched higher over the course of a week, the Employment Situation Report was released. While it wasn’t terrible, it missed expectations of stronger job numbers. This helped reverse the increase from the previous week…pushing rates back down to 4.48%.
And at the most recent Federal Open Market Committee meeting, Federal Reserve Chair Janet Yellen said that she believes we won’t see short-term interest rates increase for at least six months after the bond tapering is complete in Q4.
She also cited the number of part-time workers in the market, the quantity who are currently unemployed, as well as the fact that wages remain stagnant with only 2% increases each year since the recession—as additional reasons why we might see a jump in rates postponed. This is great news buyers and sellers alike.
