Mortgage interest rates dropped for Fremont homeowners and borrowers in the process of closing their loan after Standard & Poor downgraded the US debt. Many economist as well as professionals in the mortgage industry predicted a spike in interest rates but where proven to be wrong. Rates dropped to an averaged 4.28 percent for 30-year conforming mortgages , falling from last week’s average of rate of 4.48 percent. This sets a NEW low for interest rates this year.
The main reason for the drop in interest rates was because investors ran towards the purchase government bonds as treasuries looked more secure than the stock market. The stock market has taken serious lost in the last week and dropping more than 5 percent because of economic uncertainty in the US. What this means for you is a the same monthly payment for a higher purchase price. It is necessary that you are in a position to lock your home loan at a low rate when markets show opportunity. The unfortunate part for most borrowers is that most Loan Officers do not track the bond market LIVE. Here at Fremont Mortgage we set ourselves apart by always being current to the minute on interest rates.
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